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Author Question: Cold Products Corporation manufactured 27,000 ice chests during September. The variable overhead ... (Read 103 times)

go.lag

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on: Mar 6, 2021

Question 1

All of the following are possible causes of actual machine hours exceeding  budgeted machine hours except:
◦ Poor scheduling
◦ Actual leasing costs for the machine were higher than expected
◦ Machines were not maintained in good operating condition
◦ Budgeted standards were set to tight

Question 2

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:

ActualBudgeted
Production27,000 units20,000 units
Machine-hours21,600 hours6,000 hours
Variable overhead cost per machine-hour:$14.75$15.00
What is the flexible-budget amount?
◦ $90,000
◦ $121,500
◦ $318,600
◦ $324,000
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by go.lag on Mar 6, 2021

CAPTAINAMERICA

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Reply #1 on: Mar 6, 2021
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go.lag

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Reply 2 on: Mar 6, 2021
Great answer, keep it coming :)

samiel-sayed

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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