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: Actual Budgeted Production 27,000 units 20,000 units Machine-hours 21,600 hours 6,000 hours Variable overhead cost per machine-hour $14.75 $15.00 What is the flexible-budget amount?
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: Actual Budgeted Production 27,000 units 20,000 units Machine-hours 21,600 hours 6,000 hours Variable overhead cost per machine-hour $14.75 $15.00 What is the flexible-budget amount?
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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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:
|
|
Actual
|
|
Budgeted
|
|
|
Production
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27,000
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units
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20,000
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units
|
|
Machine-hours
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21,600
|
hours
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6,000
|
hours
|
|
Variable overhead cost per machine-hour
|
$14.75
|
|
$15.00
|
|
What is the flexible-budget amount?
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