Nance Corporation’s December 31, 2017 balance sheet showed the following: 6% preferred stock, $20 par value, cumulative, 30,000
shares authorized; 20,000 shares issued $ 400,000 Common stock, $10 par value, 3,000,000 shares authorized; 1,950,000 shares issued, 1,920,000 shares outstanding 19,500,000 Paid-in capital in excess of par value – preferred stock 60,000 Paid-in capital in excess of par value – common stock 28,000,000 Retained earnings 9,650,000 Treasury stock (30,000 shares) 630,000 Nance declared and paid a $90,000 cash dividend on December 15, 2017. If the company’s dividends in arrears prior to that date were $24,000, Nance’s common stockholders received $66,000. $53,000. $42,000. no dividends.
1 answer:
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Answer:
$409185
Explanation:
Given: Budgeted output units: 28,475 units
Budgeted machine-hours: 17,085 hours
Budgeted variable manufacturing overhead costs for 28,475 units: $358,785
Actual output units produced: 32,475 units
Actual machine-hours used: 15,000 hours
Actual variable manufacturing overhead costs: $384,060.
First, we will find Budgeted machine hour per unit produced.
Budgeted machine hour per unit produced=
⇒
∴Budgeted machine hour per unit produced= 0.6
Budgeted machine hours allowed for 32475 units=
Budgeted variable overhead rate per machine hour=
Budgeted variable overhead rate per machine hour=
Now, lets find out flexible budget amount.
Flexible budget amount=
Flexible budget amount=
∴Flexible budget amount for variable manufacturing overhead= $409185