Herard Corporation manufactures and sells a single product. The company uses uni

Question

Herard Corporation manufactures and sells a single product. The company uses units as the measure of activity in its flexible budgets. During March, the company budgeted for 7,900 units, but it actual level t activity was 7,890 units. The company has provided the following data concerning the formulas use in its budgeting and it actual results for March: Data used in budgeting: The manufacturing overhead in the flexible budget for march would be closest to? A) $50,730 b) $52,287 cl$50,713 d) $52,419

Explanation / Answer

correct option is "C"

Manufacturing overhead = variable+fixed

                               = (7890*1.7)+37300

                               = 13413+37300

                                = 50713

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