Answer:
The total flexible budget dollar amount for the actual level of material handling and actual number of inspections is $1,139,220.
Explanation:
Note: The data in this question are merged together. They are therefore sorted before answering the question as follows:
Budget Actual
Material handling 180,000 225,000
Number of inspections 6,000 6,600
Unit variable cost pool $810,000 $1,035,000
Batch-level cost pool $115,200 $126,060
The explanation of the answer is now given as follows:
These actual amounts are the flexible budget amount with two pools.
Flexible budget dollar amount for the actual level of material handling = (Budgeted Unit variable cost pool / Budgeted Material handling) * Actual Material handling = ($810,000 / 180,000) * 225,000 = $1,012,500
Flexible budget dollar amount for the actual number of inspections = Budgeted Batch-level cost pool / Budgeted Number of inspections) * Actual Number of inspections = ($115,200 / 6,000) * 6,600 = $126,720;
Total flexible budget dollar amount = Flexible budget dollar amount for the actual level of material handling + Flexible budget dollar amount for the actual number of inspections = $1,012,500 + $126,720 = $1,139,220
Therefore, the total flexible budget dollar amount for the actual level of material handling and actual number of inspections is $1,139,220.
