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.Calculate the after-the-fact budget for the actual level of activity.
A)$91,600
B)$115,000
C)$118,600
D)$77,400
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.Calculate the after-the-fact budget for the actual level of activity.
A)$91,600 
B)$115,000 
C)$118,600 
D)$77,400 
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.Calculate the after-the-fact budget for the actual level of activity.
A)$91,600 
B)$115,000 
C)$118,600 
D)$77,400 
E)none of these