Answer the Following Questions Using the Information Below:
Zitrik Corporation

question 166

Multiple Choice

Answer the following questions using the information below:
Zitrik Corporation manufactured 100,000 buckets during February. The variable overhead cost-allocation base is $5.00 per machine-hour. The following variable overhead data pertain to February:
$\begin{array}{lrr}&\text { Actual } &\text { Budgeted }\\\text { Production } & 90,000 \text { units } & 90,000 \text { units } \\\text { Machine-hours } & 9,800 \text { hours } & 9,000 \text { hours } \\\text { Variable overhead cost per machine-hour } & \$ 5.15 & \$ 5.05\end{array}$
-What is the flexible-budget amount?

• A) $49,490
• B) $45,450
• C) $46,350
• D) $47,650

---

Definitions:

Planning Budget

A budget created for a particular level of activity, often used for future financial planning and strategy development.

Budgeting Formulas

Mathematical equations used to plan and allocate financial resources in an organized manner for business operations.

Planning Budget

A financial plan that estimates future revenues, expenses, and resources needed for a specific time period, helping manage resources effectively.

Revenue Variances

The differences between actual revenue generated and the expected (or budgeted) revenue over a specific period.