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OLEGan [10]
3 years ago
13

Actual Static Budget Production 54,000 units 60,000 units Machine-hours 985 hours 1,800 hours Fixed overhead costs for September

$53,400 $90,000 The fixed-overhead budgeted cost-allocation rate (BR) $50.00 per machine-hour. Standard quantity per 1 unit (SQ) (1,800m/h: 60,000)= 0.03m/h What is the flexible-budget amount?
A. $60,000
B. $53,400
C. $90,000
D. $54,000
Business
1 answer:
Aleks04 [339]3 years ago
5 0

Answer:

D.$54,000

Explanation:

A flexible budget is a one which changes or adjusts with change in actual activity. The flexible amount is more reliable than the static amount. The static budget is one which is not adjusted with level of real activity. The machine hours are used as basis of adjustment for flexible budget. The amount of fixed overhead budgeted allocation cost is adjusted based on machine hours according to actual machine hours of 985 hours.

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Answer and Explanation:

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Service cost                 $43,700 Cr.

Interest cost              $39,608 Cr.

                              (495,100 × 8%)

Actual return                                                                    $52,100 Dr.

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Balance 31 Dec 217    $541,908 Cr.                                 $537,300 Dr.

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