Author Question: Cold Products Corporation manufactured 27,000 ice chests during September. The variable overhead ... (Read 109 times)

go.lag · **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:

Actual

Budgeted

Production

27,000 units

20,000 units

Machine-hours

21,600 hours

6,000 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

CAPTAINAMERICA · **Reply #1 on:** Mar 6, 2021

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