Dancause Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During October,the company budgeted for 5,100 units,but its actual level of activity was 5,090 units.The company has provided the following data concerning the formulas to be used in its budgeting: The manufacturing overhead in the flexible budget for October would be closest to:

Question

Dancause Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During October,the company budgeted for 5,100 units,but its actual level of activity was 5,090 units.The company has provided the following data concerning the formulas to be used in its budgeting:  The manufacturing overhead in the flexible budget for October would be closest to:

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $45,800 + ($1.70 × 5,090)= $54,453

Dancause Corporation Manufactures and Sells a Single Product