What is the budgeted fixed overhead at the actual level of activity? Question 17 options: $3,260,000 $2,240,000 $2,110,000 $2,100,000
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Shu N.
Neubert Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During December, the company budgeted for 5,300 units, but its actual level of activity was 5,340 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting: Fixed Element per Month Variable element per unit Revenue - $30.00 Direct labor $0 $3.50 Direct materials $0 $10.40 Manufacturing overhead $33,300 $1.50 Selling and administrative expenses $25,000 $0.50 Total expenses $58,300 $15.90 Actual results for December: Revenue $156,340 Direct labor $17,980 Direct materials $56,566 Manufacturing overhead $41,040 Selling and administrative expenses $28,870 The manufacturing overhead in the flexible budget for December would be closest to: A. $41,350 B. $40,733 C. $41,250 D. $41,310.
Manasvee S.
Arrojo Corporation manufactures two products: Product X71B and Product C91I. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products X71B and C91I. Activity Cost Pool Activity Measure Total Cost Total Activity Machining Machine-hours $275,000 11,000 MHs Machine setups Number of setups $210,000 350 setups Product design Number of products $48,000 2 products General factory Direct labor-hours $300,000 10,000 DLHs Activity Measure Product X71B Product C91I Machine-hours 5,000 6,000 Number of setups 220 130 Number of products 1 1 Direct labor-hours 6,000 4,000 Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product X71B? A) $416,500. B) $499,800. C) $333,200. D) $372,000.
Mauya M.
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Horngren’s Cost Accounting
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Principles of Accounting Volume 1: Financial Accounting
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