Question:

What variable manufacturing overhead cost would be included in the companys flexible budget for April?

Integrity Products Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct materials per unit: 5 pounds at $14 per pound Direct labor per unit: 2 hours at $15 per hour Variable overhead: 2 hours at $10 per hour Budgeted Fixed advertising expenses: $9,000 Budgeted Fixed sales expenses: $25,000 Budgeted Fixed shipping expenses: $15,500 The planning budget for April 2021 was based on producing and selling 3,000 units. However, during April the company actually produced and sold 2,900 units, at a selling price of $300 per unit, and incurred the following costs: (a) Purchased 14,000 pounds of raw materials at a cost of $15 per pound. All of this material was used in production. (b) Direct laborers worked 6,000 hours at a rate of $16.00 per hour (c) Total variable manufacturing overhead for the month was $65,000 (d) ACTUAL: Total fixed advertising expenses were $10,000. Total fixed sales expenses were $24,000. Total fixed shipping expenses were $15,000.