Question
Christine Corporation manufactures baseball uniforms and uses budgeted machine-hours to allocate variable manufacturing overhead. The following information pertains to the company's manufacturing overhead data: Budgeted
Christine Corporation manufactures baseball uniforms and uses budgeted machine-hours to allocate variable manufacturing overhead. The following information pertains to the company's manufacturing overhead data: Budgeted output units is 10,000 units; Budgeted machine-hourswas 15,000 hours; Budgeted variable manufacturing overhead costs for 20,000 units is $180,000. Actual output units produced was 9,000 units, Actual machine-hours used was14,000 hours and Actual variable manufacturing overhead costs was $171,000. What is the flexible-budget amount for variable manufacturing overhead?
A. $162,000
B. $171,000
C. $190,000
D. None of these answers is correct.
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