A flexible budget for Heath Company for 5 000 hours is shown below:
What are the total overhead costs for 10 000 hours?

A) $35 000
B) $45 000
C) $50 000
D) $60 000

Question

A flexible budget for Heath Company for 5 000 hours is shown below:
What are the total overhead costs for 10 000 hours?

A) $35 000 
B) $45 000 
C) $50 000 
D) $60 000

Quizplus · Accepted Answer

The flexible budget shows that overhead costs increase with an increase in hours worked. Therefore, if the budget for 5,000 hours is $30,000, the budget for 10,000 hours should be double, which is $60,000. Therefore, option D is the correct choice.

A Flexible Budget for Heath Company for 5 000 Hours