Answer the following questions using the information below:
Fearless Frank's Fertilizer Farm produces fertilizer and distributes the product by using his tanker trucks. Frank's uses budgeted fleet hours to allocate variable manufacturing overhead. The following information pertains to the company's manufacturing overhead data:

-What is the flexible-budget amount for variable manufacturing overhead?
A)$80,000
B)$78,750
C)$75,000
D)$76,500

Question

Answer the following questions using the information below:
Fearless Frank's Fertilizer Farm produces fertilizer and distributes the product by using his tanker trucks. Frank's uses budgeted fleet hours to allocate variable manufacturing overhead. The following information pertains to the company's manufacturing overhead data:
  
-What is the flexible-budget amount for variable manufacturing overhead?
A)$80,000 
B)$78,750 
C)$75,000 
D)$76,500

Quizplus · Accepted Answer

The flexible-budget amount for variable manufacturing overhead is $78,750. This is calculated by multiplying the actual production level of 15,750 units by the variable manufacturing overhead rate of $5.00 per unit.

Answer the Following Questions Using the Information Below