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:

- Calculate the after-the-fact budget for the actual level of activity.

Question

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:

- Calculate the after-the-fact budget for the actual level of activity.

Quizplus · Accepted Answer

After-the-fact budget = $18,500 + ($15.30 × 5,700*) = $105,710
*19,000 × 0.30

Montgomery Company Has Developed the Following Flexible Budget Formulas for Its