The following budget for the 60,000-unit product level was prepared for the Production Department for September:
During September, the Production Department actually produced 70,000 units at a total manufacturing cost of $210,000.
-Refer to the above data. Which of the following is not an accurate amount to be included in a flexible budget prepared for the 70,000-unit level of production?
A) Total overhead cost, $108,000.
B) Total manufacturing costs, $210,000.
C) Direct materials, $49,000.
D) Direct labor, $59,500.

Question

The following budget for the 60,000-unit product level was prepared for the Production Department for September:
  During September, the Production Department actually produced 70,000 units at a total manufacturing cost of $210,000.
-Refer to the above data. Which of the following is not an accurate amount to be included in a flexible budget prepared for the 70,000-unit level of production?
A) Total overhead cost, $108,000. 
B) Total manufacturing costs, $210,000. 
C) Direct materials, $49,000. 
D) Direct labor, $59,500.

Quizplus · Accepted Answer

The Answer of The following budget for the 60,000-unit product level was prepared for the Production Department for September:
  During September, the Production Department actually produced 70,000 units at a total manufacturing cost of $210,000.
-Refer to the above data. Which of the following is not an accurate amount to be included in a flexible budget prepared for the 70,000-unit level of production?
A) Total overhead cost, $108,000. 
B) Total manufacturing costs, $210,000. 
C) Direct materials, $49,000. 
D) Direct labor, $59,500.

The Following Budget for the 60,000-Unit Product Level Was Prepared