Which of the following mathematical expressions is found in a typical ﬂexible-budget formula for overhead?
A)Total activity units + budgeted ﬁxed overhead cost per unit.
B)Budgeted variable overhead cost per unit + budgeted ﬁxed overhead cost.
C)(Budgeted variable overhead cost per unit × total activity units) + budgeted ﬁxed overhead costs.
D)(Budgeted ﬁxed overhead cost per unit × total activity units) + (budgeted variable overhead cost per unit ×
E)None of the answers is correct.

Question

Quizplus · Accepted Answer

A typical flexible-budget formula for overhead includes both fixed and variable costs. Choice C represents the formula for calculating total overhead cost in a flexible budget, which includes the budgeted variable overhead cost per unit multiplied by the total activity units and the budgeted fixed overhead costs. This formula allows for variations in activity levels and calculates the appropriate overhead costs based on those variations.

Which of the Following Mathematical Expressions Is Found in a Typical