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

Answer:

flexible-budget amount is $57,500

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