Figure 11-3

question 96

Multiple Choice

Figure 11-3. Montgomery Company has developed the following flexible budget formulas for its four overhead items:
Montgomery normally produces 15,000 units (each unit requires 0.30 direct labor hours) ; however this year 19,000 units were produced with the following actual costs:
Refer to Figure 11-3.Calculate the after-the-fact budget for the actual level of activity.

• A)$91,600
• B)$115,000
• C)$118,600
• D)$77,400
• E)none of these

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Definitions:

Year Mortgage

Refers to the term or length of a mortgage, typically specified in years, indicating the repayment period.

Future Value

The value of an investment or a sum of money projected to grow by a specific date, factoring in compound interest or returns.

Interest Rate

The percentage of a sum of money charged for its use, which can vary based on factors such as inflation, supply and demand of credit, and governmental policy.

Annual

Relating to a period of one calendar year, used to measure or describe events, reports, or statistics that occur or are accumulated yearly.