When Walston Corporation Prepared Its Budget for 2017, It Estimated

question 66

Multiple Choice

When Walston Corporation prepared its budget for 2017, it estimated fixed overhead of $540,000 ($45,000 per month) and variable overhead at $3.00 per unit produced.The company planned to produce 48,000 units during the year at a rate of 4,000 units each month.During April, the company produced 3,800 units and total overhead costs were $59,000.How much is the amount of overhead in the flexible budget for April's level of production?

• A)$57,000
• B)$45,000
• C)$46,000
• D)$56,400

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