Answer the following questions using the information below:
Wagga Wagga Corporation manufactured 30 000 eskies during September.The overhead cost-allocation base is $12.50 per machine-hour.The following variable overhead data pertain to September:
$$\begin{array} { l r r }
& \text { Actual } & \text { Budgeted } \
\text { Production } & 30000 \text { units } & 24000 \text { units } \
\text { Machine-hours } & 15000 \text { hours } & 10800 \text { hours } \
\text { Variable overhead cost per machine-hour: } & \$ 12.00 & \$ 12.50
\end{array}$$
-What is the actual variable overhead cost?
A)$121 500
B)$151 875
C)$180 000
D)$168 750

Question

Answer the following questions using the information below:
Wagga Wagga Corporation manufactured 30 000 eskies during September.The overhead cost-allocation base is $12.50 per machine-hour.The following variable overhead data pertain to September:
 $$\begin{array} { l r r } 
& \text { Actual } & \text { Budgeted } \
\text { Production } & 30000 \text { units } & 24000 \text { units } \
\text { Machine-hours } & 15000 \text { hours } & 10800 \text { hours } \
\text { Variable overhead cost per machine-hour: } & \$ 12.00 & \$ 12.50
\end{array}$$
-What is the actual variable overhead cost?
A)$121 500
B)$151 875
C)$180 000
D)$168 750

Quizplus · Accepted Answer

The actual variable overhead cost is calculated by multiplying the actual machine-hours (15,000 hours) by the actual variable overhead cost per machine-hour ($12.00), which equals $180,000.

Answer the Following Questions Using the Information Below: Wagga Wagga

Answer the Following Questions Using the Information Below:
Wagga Wagga