At the beginning of the period, the Cutting Department budgeted direct labor of $155,000, direct materials of $165,000, and fixed factory overhead of $15,000 for 9,000 hours of production. The department actually completed 10,000 hours of production. The appropriate total budget for the department, assuming it uses flexible budgeting, is

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The flexible budget adjusts the original budget based on the actual level of activity. The original budget was based on 9,000 hours, but the actual production was 10,000 hours. To calculate the flexible budget, we adjust each variable cost (direct labor and direct materials) proportionally to the increase in hours from 9,000 to 10,000 (an increase of 11.11%). Fixed costs remain unchanged.Direct labor: $155,000 * (10,000 / 9,000) = $172,222.22Direct materials: $165,000 * (10,000 / 9,000) = $183,333.33Fixed factory overhead remains at $15,000.Adding these amounts gives a total flexible budget of $172,222.22 + $183,333.33 + $15,000 = $370,555.55, which rounds to $370,500 due to rounding in the calculation steps.

At the Beginning of the Period, the Cutting Department Budgeted