Delaware Corp.prepared a master budget that included $21,360 for direct materials,$33,600 for direct labor,$18,000 for variable overhead,and $46,440 for fixed overhead.Delaware Corp.planned to sell 4,000 units during the period,but actually sold 4,300 units.How much would variable overhead cost be on a flexible budget for the period based on actual sales?
A)$16,745
B)$18,000
C)$19,350
D)$46,440

Question

Quizplus · Accepted Answer

To calculate the variable overhead cost in a flexible budget based on actual sales, we need to first calculate the variable cost per unit.

Variable cost per unit = (Direct materials + Direct labor + Variable overhead) / Number of units

Variable cost per unit = ($21,360 + $33,600 + $18,000) / 4,000 units = $18.99 per unit

Using this variable cost per unit, we can calculate the variable overhead cost for the actual sales of 4,300 units:

Variable overhead cost = Variable cost per unit x Actual units sold

Variable overhead cost = $18.99 x 4,300 units = $81,437

Therefore, the variable overhead cost on a flexible budget for the period based on actual sales is $19,350 (rounded to the nearest dollar). The correct answer is C.