J&J Materials and Construction Corporation produces mulch and distributes the product by using dump trucks.The company uses budgeted fleet hours to allocate variable manufacturing overhead.The following information pertains to the company's manufacturing overhead data:
$\begin{array}{ll}
\text { Budgeted output units } & 690 \text { truckloads } \
\text { Budgeted fleet hours } & 621 \text { hours } \
\text { Budgeted variable manufacturing overhead costs for } 690 \text { loads } & \$ 94,392
\end{array}$
$\begin{array}{ll}
\text { Actual output units produced and delivered } & 630 \text { truckloads } \
\text { Actual fleet hours } & 546 \text { hours } \
\text { Actual variable manufacturing overhead costs } & \$ 89,592
\end{array}$
What is the flexible-budget amount for variable manufacturing overhead? (Round intermediary calculations two decimal places and your final answer to the nearest whole dollar. )

Question

Quizplus · Accepted Answer

The flexible-budget amount for variable manufacturing overhead is calculated by determining the variable overhead rate per fleet hour and then applying it to the actual fleet hours. The rate is $94,392 / 621 hours = $152 per hour. For 546 actual hours, the flexible budget is 546 hours * $152/hour = $83,092.

J&J Materials and Construction Corporation Produces Mulch and Distributes the Product