Answer:
$378,000
Explanation:
First, we need to find the variable cost per hour:
(Direct Material + Direct Labor)/Number of hours of production
= $(170,000+110,000)/8,000
= $35
Since, the department took more hours for production, therefore,
Additional budgeted costs = (10,000 - 8,000) x $35 = $70,000
Total appropriate budget for the department using flexible budgeting:
Prime cost + Factory overhead (Fixed) + Additional hourly (budgeted) costs
= (Direct labor + Direct Material) + Factory overhead (Fixed) + Additional hourly (budgeted) costs
= $(110,000 + 170,000)+$28,000+$70,000
= $378,000
