Dubberly Corporation's cost formula for its manufacturing overhead is $30,600 per month plus $64 per machine-hour. For the month of March, the company planned for activity of 7,900 machine-hours, but the actual level of activity was 7,880 machine-hours. The actual manufacturing overhead for the month was $558,610.The manufacturing overhead in the flexible budget for March would be closest to:

Question

Quizplus · Accepted Answer

The flexible budget for manufacturing overhead is calculated using the formula: Fixed cost + (Variable cost per machine-hour * Actual machine-hours). Therefore, it is $30,600 + ($64 * 7,880) = $534,920.

Dubberly Corporation's Cost Formula for Its Manufacturing Overhead Is $30,600