Montgomery normally produces 15,000 units (each unit requires 0.30 direct labor hours); however this year 19,000 units were produced with the following actual costs:

-Refer to Figure 11-3. Prepare an overhead budget for the expected activity level of 10,000 units. The total budgeted overhead is
A) $139,400.
B) $64,400.
C) $124,000.
D) $12,400.
E) None of these.

Question

Montgomery normally produces 15,000 units (each unit requires 0.30 direct labor hours); however this year 19,000 units were produced with the following actual costs:
 
-Refer to Figure 11-3. Prepare an overhead budget for the expected activity level of 10,000 units. The total budgeted overhead is
A) $139,400. 
B) $64,400. 
C) $124,000. 
D) $12,400. 
E) None of these.

Quizplus · Accepted Answer

The Answer of  Montgomery normally produces 15,000 units (each unit requires 0.30 direct labor hours); however this year 19,000 units were produced with the following actual costs:
 
-Refer to Figure 11-3. Prepare an overhead budget for the expected activity level of 10,000 units. The total budgeted overhead is
A) $139,400. 
B) $64,400. 
C) $124,000. 
D) $12,400. 
E) None of these.

Montgomery Normally Produces 15,000 Units (Each Unit Requires 0