Asked by Andrea Puentes on May 27, 2024
Verified
The budgeted fixed manufacturing overhead cost was:
A) $24,000
B) $38,900
C) $40,200
D) $37,600
Fixed Manufacturing Overhead
Refers to the consistent, unvarying costs associated with manufacturing that do not fluctuate with production volume, like salaries of managerial staff and depreciation of factory equipment.
- Assess the relationship between budgeted, applied, and actual manufacturing overhead costs.
Verified Answer
KS
Kaylie SorensenMay 29, 2024
Final Answer :
D
Explanation :
Budget variance = Actual fixed overhead - Budgeted fixed overhead
$1,300 U = $38,900 - Budgeted fixed overhead
$1,300 = $38,900 - Budgeted fixed overhead
Budgeted fixed overhead = $38,900 - $1,300
Budgeted fixed overhead = $37,600
$1,300 U = $38,900 - Budgeted fixed overhead
$1,300 = $38,900 - Budgeted fixed overhead
Budgeted fixed overhead = $38,900 - $1,300
Budgeted fixed overhead = $37,600
Learning Objectives
- Assess the relationship between budgeted, applied, and actual manufacturing overhead costs.
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