Figure 11-3. Montgomery Company has developed the following flexible budget formulas for its four overhead items:
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

Figure 11-3. Montgomery Company has developed the following flexible budget formulas for its four overhead items:
 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 Figure 11-3. Montgomery Company has developed the following flexible budget formulas for its four overhead items:
 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.