Lehnertz Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During February,the company budgeted for 7,100 units,but its actual level of activity was 7,150 units.The company has provided the following data concerning the formulas used in its budgeting and its actual results for February: Data used in budgeting: Actual results for February: The manufacturing overhead in the flexible budget for February would be closest to:

Question

Lehnertz Corporation manufactures and sells a single product.The company uses units as the measure of activity in its budgets and performance reports.During February,the company budgeted for 7,100 units,but its actual level of activity was 7,150 units.The company has provided the following data concerning the formulas used in its budgeting and its actual results for February: Data used in budgeting:  Actual results for February:  The manufacturing overhead in the flexible budget for February would be closest to:

Quizplus · Accepted Answer

Cost = Fixed cost + (Variable cost per unit × q)
= $34,000 + ($1.20 × 7,150)= $42,580

Lehnertz Corporation Manufactures and Sells a Single Product