Answer the Following Questions Using the Information Below:
Roberson Corporation

question 150

Multiple Choice

Answer the following questions using the information below:
Roberson Corporation manufactured 30,000 ice chests during September. The variable overhead cost-allocation base is $11.25 per machine-hour. The following variable overhead data pertain to September:
$\begin{array}{lrr}&\text { Actual } &\text { Budgeted }\\\text { Production } & 30,000 \text { units } & 24,000 \text { units } \\\text { Machine-hours } & 15,000 \text { hours } & 10,800 \text { hours } \\\text { Variable overhead cost per machine-hour: } & \$ 11.00 & \$ 11.25\end{array}$
-What is the actual variable overhead cost?

• A) $121,500
• B) $151,875
• C) $165,000
• D) $168,750

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Definitions:

Completed Products

Goods that have finished the manufacturing process and are ready to be sold to customers.

Goods Acquired

Refers to the products or commodities a company purchases to either resell or use in their production process.

Not Completely Finished

Pertains to products or goods that have commenced production but have not yet reached their final form or required specifications for sale or use.