Question

NuArt Company’s budgeted production for November is 5,500 units. Budgeted component unit costs include: direct materials, $24; direct labor, $30; variable overhead, $18. Budgeted fixed overhead is $100,000. NuArt’s actual production for November was 6,000 units. Actual component unit costs include: direct materials, $24.50; direct labor, $29; variable overhead, $18.40. Actual fixed overhead was $94,000. NuArt’s flexible budget amount for direct labor in November would be:

Answer 1

Answer:

A. 99,000

Explanation:

Production budget amount for variable overhead = Units * Budgeted component unit for variable overhead

= 5,500 Units * $ 18

= $ 99,000

Hence the correct answer is A. 99,000