?J&J Materials and Construction Corporation produces mulch and distributes the p

Question

?J&J Materials and Construction Corporation produces mulch and distributes the product by using dump trucks. The company uses budgeted fleet hours to allocate variable manufacturing overhead. The following information pertains to the? company's manufacturing overhead? data:

Budgeted output units 690 truckloads

Budgeted? machine-hours 621 hours

Budgeted variable manufacturing overhead costs for 690 loads ?$94,392

Actual output units produced 630 truckloads

Actual? machine-hours used 546 hours

Actual variable manufacturing overhead costs ?$89,592

What is the? flexible-budget amount for variable manufacturing? overhead? (Round intermediary calculations two decimal places and your final answer to the nearest whole? dollar.) A. ?$94,392 B. ?$81,801 C. ?$86,184 D. ?$89,592

Explanation / Answer

Ans is C $86,184

Explanation: Budgeted machine hour per truckload = 621/690 = 0.9 Hr

Budgeted machine hour rate = 94392/621 = $152 per machine hour

Flexible hour for 630 truckloads = 630 x 0.9 = 567 Hours

Total flexible budget for 630 truckloads = 567 hours x $152 = $86,184

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