Cold Products Corporation Manufactured 27,000 Ice Chests During September What Is the Flexible-Budget Amount?
A)$90,000
B)$121,500
C)$318,600
D)$324,000

Cold Products Corporation manufactured 27,000 ice chests during September.The variable overhead cost-allocation base is $15.00 per machine-hour.The following variable overhead data pertain to September:
$\begin{array}{lll}&\text { Actual }&\text { Budgeted } \\\text { Production } & 27,000 \text { units } & 20,000 \text { units } \\\text { Machine-hours } & 21,600 \text { hours } & 6,000 \text { hours } \\\text { Variable overhead cost per machine-hour: } & \$ 14.75 & \$ 15,00\end{array}$
What is the flexible-budget amount?

A) $90,000
B) $121,500
C) $318,600
D) $324,000