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Montgomery Company has developed the following flexible budget formulas for its four overhead items: Variable rate per direct labor hour Overhead Item Maintenance Fixed Cost
Montgomery Company has developed the following flexible budget formulas for its four overhead items: Variable rate per direct labor hour Overhead Item Maintenance Fixed Cost $10,000 $ 1,500 $ 3.00 Power $ 0.30 $12.00 Indirect labor cost Equipment lease Total $7,000 $18,500 $15.30 Montgomery normally produces 15,000 units (each unit requires 0.30 direct labor hours); however this year 19,000 units were produced with the following actual costs: Overhead Item Maintenance Power Actual costs $14,000 $ 2,200 $70,000 $ 7.000 $93.200 Indirect labor cost Equipment lease Total costs Calculate the after-the-fact budget for the actual level of activity Oa. $115.000 Ob. 591,600 Oc. 577,400 118.600
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