Question

Rutch Corporation manufactured 54,000 door jambs during September. The fixed-overhead cost-allocation rate is $50.00 per machine-hour. The following fixed overhead data pertain to September: Actual Static Budget Production 54,000 units 60,000 units Machine-hours 985 hours 1,150 hours Fixed overhead costs for September $53,400 $57,500 What is the flexible-budget amount

Answer 1

flexible-budget amount is $57,500

Step-by-step explanation:

given data

fixed-overhead cost-allocation rate = $50.00 per machine-hour

Actual Static Budget

Production 54,000 units 60,000 units

Machine-hours 985 hours 1,150 hours

Fixed overhead costs $53,400 $57,500

for September

solution

we get here flexible-budget amount so as we know flexible-budget amount is here the same lump sum as the static budget

so that

flexible-budget amount September is $57,500