Dubberly Corporation's cost formula for its manufacturing overhead is $30,600 per month plus $64 per machine-hour. For the month of March, the company planned for activity of 7,900 machine-hours, but the actual level of activity was 7,880 machine-hours. The actual manufacturing overhead for the month was $558,610.The manufacturing overhead in the flexible budget for March would be closest to:

A) $558,610
B) $536,200
C) $534,843
D) $534,920

Question

Margareth Negrillo · Accepted Answer

Final Answer : D, Explanation :  The flexible budget for manufacturing overhead is calculated using the formula: Fixed cost + (Variable cost per machine-hour * Actual machine-hours). Therefore, it is $30,600 + ($64 * 7,880) = $534,920.

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