Panama Co.prepared the following ﬂexible overhead budget where PH is process hour.Which of the answers provided correctly completes the table?
A)Choice A
B)Choice B
C)Choice C
D)Choice D
E)Choice E

Question

Panama Co.prepared the following ﬂexible overhead budget where PH is process hour.Which of the answers provided correctly completes the table? 
A)Choice A 
B)Choice B 
C)Choice C 
D)Choice D 
E)Choice E

Quizplus · Accepted Answer

The actual overhead cost for the period was $75,000 and the actual process hours were 8,000. Thus, the actual overhead rate per process hour is $9.375 ($75,000 ÷ 8,000 PH). Using this rate, we can calculate the expected overhead cost for each level of activity. For example, at 10,000 PH, the expected overhead cost would be $93,750 ($9.375 × 10,000 PH), which is option A in the table.

Panama CoPrepared the Following ﬂExible Overhead Budget Where PH Is Process