Gus Corporation manufactured 10,000 golf bags during April. The fixed overhead cost-allocation rate is $40.00 per machine-hour. The following is the fixed overhead data: Actual Static Budget Production 10,000 units 12,000 units Machine-hours 5,100 hours 6,000 hours Fixed overhead cost $244,000 $240,000 What is the flexible-budget amount? A) $200,000 B) $204,000 C) $240,000 D) $244,000 What is the amount of fixed overhead allocated to production (Actual Qty x Bud Price column)? A) $200,000 B) $204,000 C) $240,000 D) $244,000 The total Fixed overhead variance is: A) overallocated by $4,000 B) underallocated by $4,000 C) overallocated by $44,000 D) underallocated by $44,000
Gus Corporation manufactured 10,000 golf bags during April. The fixed overhead cost-allocation rate is $40.00 per machine-hour. The following is the fixed overhead data: Actual Static Budget Production 10,000 units 12,000 units Machine-hours 5,100 hours 6,000 hours Fixed overhead cost $244,000 $240,000 What is the flexible-budget amount? A) $200,000 B) $204,000 C) $240,000 D) $244,000 What is the amount of fixed overhead allocated to production (Actual Qty x Bud Price column)? A) $200,000 B) $204,000 C) $240,000 D) $244,000 The total Fixed overhead variance is: A) overallocated by $4,000 B) underallocated by $4,000 C) overallocated by $44,000 D) underallocated by $44,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Gus Corporation manufactured 10,000 golf bags during April. The fixed overhead cost-allocation rate is $40.00 per machine-hour. The following is the fixed overhead data:
Actual Static Budget
Production 10,000 units 12,000 units
Machine-hours 5,100 hours 6,000 hours
Fixed overhead cost $244,000 $240,000
What is the flexible-budget amount?
A) $200,000
B) $204,000
C) $240,000
D) $244,000
What is the amount of fixed overhead allocated to production (Actual Qty x Bud Price column)?
A) $200,000
B) $204,000
C) $240,000
D) $244,000
The total Fixed overhead variance is:
A) overallocated by $4,000
B) underallocated by $4,000
C) overallocated by $44,000
D) underallocated by $44,000
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