Mathematics · Cost Accounting
When the budget for the three months to 30 April was prepared, the expected level of production was 20,000 units and the budgeted production overhead was $178,400. This included $42,000 of fixed costs, with the remainder estimated to vary with the level of production. If actual production was 21,220 units, what is the flexed production overhead budget for the period?
- 1$231,282.40
- 2$189,282.40
- 3$186,720.40✓
- 4$144,720.40
Correct answer
$186,720.40
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