Exhibit 10-2
Benny's Bakery produces bagels for resale at local grocery stores.The master budget indicates that the company expects to use 2.5 pounds of direct materials for each unit produced at a cost of $10.00 per pound (one unit = one batch of bagels) .Each unit produced will require 0.30 direct labor hours at a cost of $24.00 per hour.Variable manufacturing overhead is applied based on direct labor hours at a rate of $4.80 per hour.Last year's sales were expected to total 40,000 units.Benny just received last year's actual results showing sales of 35,000 units.
-Refer to Exhibit 10-2.What amount would the flexible budget show for variable manufacturing overhead?
A) $50,400
B) $57,600
C) $560,000
D) $168,000
E) None of the answer choices is correct.
Correct Answer:
Verified
Q27: Exhibit 10-2
Benny's Bakery produces bagels for resale
Q28: Most managers prefer attainable standards rather than
Q29: All of the following are possible causes
Q30: Exhibit 10-2
Benny's Bakery produces bagels for resale
Q31: Cost variance analysis for activity-based costing uses
Q33: Exhibit 10-2
Benny's Bakery produces bagels for resale
Q34: A favorable materials price variance may be
Q35: There is no efficiency variance for fixed
Q36: Baxter Company incurred labor costs of $10,800
Q37: Exhibit 10-1
Flatland Company applies fixed manufacturing
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