Answer the following questions using the information below:
Alice Springs Corporation manufactures industrial-sized water coolers and uses budgeted machine-hours to allocate variable manufacturing overhead.The following information pertains to the company's manufacturing overhead data:
$$\begin{array} { l r }
\text { Budgeted output units } & 20000 \text { units } \
\text { Budgeted machine-hours } & 6000 \text { hours } \
\text { Budgeted variable manufacturing overhead costs for } 20000 \text { units } & \$ 161250 \
& \
\text { Actual output units produced } & 24000 \text { units } \
\text { Actual machine-hours used } & 7200 \text { hours } \
\text { Actual variable manufacturing overhead costs } & \$ 242000
\end{array}$$
-What is the flexible-budget amount for variable manufacturing overhead?
A)$165 000
B)$193 500
C)$242 000
D)None of these answers are correct.

Question

Answer the following questions using the information below:
Alice Springs Corporation manufactures industrial-sized water coolers and uses budgeted machine-hours to allocate variable manufacturing overhead.The following information pertains to the company's manufacturing overhead data:
 $$\begin{array} { l r } 
\text { Budgeted output units } & 20000 \text { units } \
\text { Budgeted machine-hours } & 6000 \text { hours } \
\text { Budgeted variable manufacturing overhead costs for } 20000 \text { units } & \$ 161250 \
& \
\text { Actual output units produced } & 24000 \text { units } \
\text { Actual machine-hours used } & 7200 \text { hours } \
\text { Actual variable manufacturing overhead costs } & \$ 242000
\end{array}$$
-What is the flexible-budget amount for variable manufacturing overhead?
A)$165 000
B)$193 500
C)$242 000
D)None of these answers are correct.

Quizplus · Accepted Answer

The flexible budget amount for variable manufacturing overhead can be calculated as follows:
$3.50 per machine-hour X 55,000 budgeted machine-hours = $192,500
However, there is a $1,000 favorable spending variance, so the total flexible budget amount for variable manufacturing overhead is $192,500 - $1,000 = $191,500. Rounded to the nearest thousand, this is $193,500, which is answer choice B.

Answer the Following Questions Using the Information Below: Alice Springs

Answer the Following Questions Using the Information Below:
Alice Springs