Fullagar Corporation's cost formula for its manufacturing overhead is $15,400 per month plus $11 per machine-hour. For the month of May, the company planned for activity of 7,500 machine-hours, but the actual level of activity was 7,540 machine-hours. The actual manufacturing overhead for the month was $102,710.
-The manufacturing overhead in the flexible budget for May would be closest to:
A)$97,900
B)$98,422
C)$98,340
D)$102,710

Question

Quizplus · Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $15,400 + $11 F1F1F1S1F1F1F10 7,540 = $98,340

Fullagar Corporation's Cost Formula for Its Manufacturing Overhead Is $15,400