Haren Company uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows:
Fixed overhead costs per month are:
The company believes it will normally operate in a range of 2,000 to 4,000 machine hours per month. During the month of August, 2010, the company incurs the following manufacturing overhead costs:
Instructions
Prepare a flexible budget report, assuming that the company used 3,000 machine hours during August.

Question

Haren Company uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows:  
Fixed overhead costs per month are:  
The company believes it will normally operate in a range of 2,000 to 4,000 machine hours per month. During the month of August, 2010, the company incurs the following manufacturing overhead costs:  
Instructions
Prepare a flexible budget report, assuming that the company used 3,000 machine hours during August.

Quizplus · Accepted Answer

The Answer of Haren Company uses a flexible budget for manufacturing overhead based on machine hours. Variable manufacturing overhead costs per machine hour are as follows:  
Fixed overhead costs per month are:  
The company believes it will normally operate in a range of 2,000 to 4,000 machine hours per month. During the month of August, 2010, the company incurs the following manufacturing overhead costs:  
Instructions
Prepare a flexible budget report, assuming that the company used 3,000 machine hours during August.

Haren Company Uses a Flexible Budget for Manufacturing Overhead Based