Question
Corporation manufactured 200,000 boxes during April. The overhead cost-allocation base is $5.00 per machine-hour. The following variable overhead data pertain to April: Actual Budgeted Production
Corporation manufactured 200,000 boxes during April.
The overhead cost-allocation base is $5.00 per machine-hour.
The following variable overhead data pertain to April:
Actual Budgeted
Production 200,000 boxes 200,000 boxes
Machine-hours 12,000 hours 10,000 hours
Variable overhead cost per machine-hour $5.50 $5.00
What is the actual variable overhead cost?
| A. | $50,000 | |
| B. | $62,000 | |
| C. | $66,000 | |
| D. | $60,000 |
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. | $90,000 | |
| B. | $53,000 | |
| C. | $54,000 | |
| D. | $60,000 |
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Auditing And Other Assurance Services
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Ingrid B. Splettstoesser
10th Canadian Edition
0131296159, 978-0131296152
