Mathematics · Budgeting & Cost Accounting
Starry prepared a fixed budget of 50,000 direct labour hours, with estimated variable overhead costs of $250,000 and fixed overhead cost of $60,000. It then prepared a flexible budget at 38,000 labour hours. What is the total overhead cost in the flexible budget?
- 1$250,000✓
- 2$250,000
- 3$247,000
- 4$190,000
Correct answer
$250,000
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