The manufacturing overhead budget for Cullumber Company contains the following items:

Variable expenses
Indirect materials		$22,440
Indirect labour		12,240
Maintenance expenses		10,200
Manufacturing supplies		6,120
Total variable expenses		$51,000
Fixed expenses
Supervision		$17,300
Inspection costs		1,000
Insurance expenses		2,000
Depreciation		15,300
Total fixed expenses		$35,600

The budget was based on an estimated 2,040 units being produced. During the past month, 1,530 units were produced, and the following costs were incurred:

Variable expenses
Indirect materials		$23,000
Indirect labour		13,800
Maintenance expenses		8,400
Manufacturing supplies		5,100
Total variable expenses		$50,300
Fixed expenses
Supervision		$18,800
Inspection costs		1,200
Insurance expenses		2,200
Depreciation		15,000
Total fixed expenses		$37,200

(b)

Correct answer icon

Your answer is correct.

How much should have been spent during the month for the manufacture of the 1,530 units?

Total cost

$73,850

Prepare a flexible manufacturing overhead budget report for Hideko.

With explanation to help me understand, please.

SHERIDAN COMPANY Production Department Manufacturing Overhead Budget Report (Flexible) For the Past Month Nei no Budget Actual