Answer the Following Questions Using the Information Below:
Melbourne Corporation

question 102

Multiple Choice

Answer the following questions using the information below:
Melbourne Corporation manufactured 57 000 door jambs during September.The fixed-overhead cost-allocation rate is $50.00 per machine-hour.The following fixed overhead data pertain to September:
$$\begin{array} { l r r } & \text { Actual } & \text { Static Budget } \\\text { Production } & 57000 \text { units } & 60000 \text { units } \\\text { Machine-hours } & 985 \text { hours } & 1200 \text { hours } \\\text { Fixed overhead costs for September } & \$ 54300 & \$ 60000\end{array}$$
-What is the flexible-budget amount?

• A)$54 300
• B)$51 750
• C)$60 000
• D)$100 000

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Definitions:

Income Statement Account

A financial account that shows the company's revenues, expenses, and net income over a specific period.

Petty Cash Transactions

Small purchases or expenditures paid using a readily available cash fund.

Cash Over and Short

An account that reports the discrepancies between the physical count of cash and the recorded amounts in a business's financial records.

Internal Control Procedures

Systems and policies put in place by a company to ensure the accuracy and integrity of financial and accounting information, prevent fraud, and comply with laws.