A flexible budget for 15,000 hours revealed variable manufacturing overhead of $90,000 and fixed manufacturing overhead of $120,000. The budget for 20,000 hours would reveal total overhead costs of:
A) $240,000.
B) $270,000.
C) $290,000.
D) $350,000.
E) $210,000.

Question

Quizplus · Accepted Answer

Variable manufacturing overhead is $6 per hour and fixed manufacturing overhead is $120,000. Total overhead costs for 20,000 hours would be $240,000 ($6 x 20,000 + $120,000).

A Flexible Budget for 15,000 Hours Revealed Variable Manufacturing Overhead