Question

Use the following information to answer the questions below:

Baseballic Corporation manufactures baseball uniforms and uses budgeted machine-hours to allocate variable manufacturing overhead. The following information relates to the company's manufacturing overhead data:

Budgeted output units 11,250 units
Budgeted machine-hours 22,500 hours
Budgeted variable manufacturing overhead costs for 22,500 hours $213,750

Actual output units produced 11,500 units
Actual machine-hours used 22,000 hours
Actual variable manufacturing overhead costs $225,000

6) What is the flexible-budget amount for variable manufacturing overhead?
A) $225,000
B) $218,500
C) $213,750
D) $221,750

7) What is the flexible-budget variance for variable manufacturing overhead?
A) $6,500 unfavorable
B) $6,500 favorable
C) $11,250 unfavorable
D) $11,250 favorable

8) What is the amount of the budgeted variable manufacturing overhead cost per unit?
A) $9.50 per unit
B) $18.58 per unit
C) $19.00 per unit
D) $19.56 per unit

Answer 1

The flexible-budget amount for variable manufacturing overhead is $9.50 per machine-hour. The flexible-budget variance for variable manufacturing overhead is $6,500 unfavorable. The budgeted variable manufacturing overhead cost per unit is $19.00 per unit.

Step-by-step explanation:

To calculate the flexible-budget amount for variable manufacturing overhead, we need to calculate the budgeted variable manufacturing overhead cost per machine-hour. This can be done by dividing the budgeted variable manufacturing overhead costs by the budgeted machine-hours. So, the flexible-budget amount for variable manufacturing overhead is $213,750 / 22,500 hours = $9.50 per machine-hour.

To calculate the flexible-budget variance for variable manufacturing overhead, we need to calculate the difference between the flexible-budget amount and the actual variable manufacturing overhead costs. So, the flexible-budget variance is $9.50 per machine-hour × (22,000 hours - 22,500 hours) = $6,500 unfavorable.

To calculate the budgeted variable manufacturing overhead cost per unit, we need to divide the budgeted variable manufacturing overhead costs by the budgeted output units. So, the budgeted variable manufacturing overhead cost per unit is $213,750 / 11,250 units = $19.00 per unit.