Question
ABC Company manufactures a single product. The company uses standard costing system and variable manufacturing overhead costs are absorbed on the basis of machine hours.
ABC Company manufactures a single product. The company uses standard costing system and variable manufacturing overhead costs are absorbed on the basis of machine hours. For the coming period, the company plans to produce 2,000 units of the product and the standard machine hours is 10,000 hours in total. Teams Assignments The following table shows the budgeted variable manufacturing overhead costs for the planned machine hours: Calendar Molding Machine power Budgeted variable overhead cost ($) 4,000 120,000 Calls 40,000 150,000 Machine maintenance Indirect engineering labor Other materials Files 8,000 During the current period, the company actually produced 1,800 units of the product and used 9,200 machine hours. what is the flexed amount of machine maintenance cost in the flexible budget?
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