Herard Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During March, the company budgeted for 7,900 units, but its actual level of activity was 7,890 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for March:

Data used in budgeting:
Actual results for March:
-The manufacturing overhead in the flexible budget for March would be closest to:
A)$50,730
B)$52,287
C)$50,713
D)$52,419

Question

Herard Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During March, the company budgeted for 7,900 units, but its actual level of activity was 7,890 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for March:

Data used in budgeting:

Actual results for March:

-The manufacturing overhead in the flexible budget for March would be closest to:

Data used in budgeting:
 Actual results for March: 
-The manufacturing overhead in the flexible budget for March would be closest to:
A)$50,730 
B)$52,287 
C)$50,713 
D)$52,419

Quizplus · Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $37,300 + $1.70 F1F1F1S1F1F1F10 7,890 = $50,713

Herard Corporation Manufactures and Sells a Single Product