Jenny's Corporation manufactured 25,000 grooming kits for horses during March. The fixed-overhead cost-allocation rate is $20.00 per machine-hour. The following fixed overhead data pertain to March: Actual Static Budget Production 25,000 units 24,000 units Machine-hours 6,100 hours 6,000 hours Fixed overhead costs for March $123,000 $120,000 What is the flexible-budget amount?

Question

Business

Ronald

7 May, 14:14

Jenny's Corporation manufactured 25,000 grooming kits for horses during March. The fixed-overhead cost-allocation rate is $20.00 per machine-hour. The following fixed overhead data pertain to March: Actual Static Budget Production 25,000 units 24,000 units Machine-hours 6,100 hours 6,000 hours Fixed overhead costs for March $123,000 $120,000 What is the flexible-budget amount?

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Walker Rose · Answer 1

The flexible-budget amount is $120,000

Explanation:

The flexible-budget amount is the same lump sum as the static budget.

Therefore, The flexible-budget amount is $120,000.