Figure 11-3

question 55

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.Prepare an overhead budget for the expected activity level of 10,000 units.The total budgeted overhead is

• A)$139,400.
• B)$64,400.
• C)$124,000.
• D)$12,400.
• E)none of these.

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Definitions:

Income

Represents the financial earnings of an individual or enterprise, often quantified on a yearly basis.

Utility Function

An economic model representing how a consumer ranks different bundles of goods based on the level of satisfaction or utility they provide.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.

Income

The amount of money received by an individual or group over a certain period, often derived from work, investments, or business activities.