At the beginning of the period, the Cutting Department budgeted direct labor of $140,000, direct materials...
At the beginning of the period, the Cutting Department budgeted direct labor of $140,000, direct materials of $165,000, and fixed factory overhead of $14,500 for 7,800 hours of production. The department actually completed 11,700 hours of production. What is the appropriate total budget for the department, assuming it uses flexible budgeting? a. $479,250 b. $326,750 c. $319,500 d. $471,970
Homework Answers
Answer- The appropriate total budget for the department, assuming it uses flexible budgeting is = $471970.
Explanation-Flexible budget at 11700 hours of production= Direct Labor + Direct Material + Fixed factory overhead
$210015+$247455+$14500
= $471970
Where- Direct Labor = ($140000/7800 hours)*11700 hours =$210015
Direct Material = ($165000/7800 hours)*11700 hours =$247455
Fixed factory overhead = $14500
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