Use the Following Information to Answer the Following Questions:
Autogas

question 28

Multiple Choice

Use the following information to answer the following questions:
Autogas Corporation manufactures industrial-sized gas furnaces and uses budgeted machine hours to allocate variable manufacturing overhead. The following information relates to the company's manufacturing overhead data:
$\begin{array}{lr}\text { Budgeted output units } & 31,000 \text { urits } \\\text { Budgeted machine-hours } & 16,585 \text { hours } \\\text { Budgeted variable manufacturing overhead costs for } 31,000 \text { units } & \$ 348,285 \\\text { Actual output units produced } & 33,000 \text { urits } \\\text { Actual machine-hours used } & 14,400 \text { hours } \\\text { Actual variable manufacturing overhead costs } & \$ 384,000\end{array}$
-What is the flexible-budget amount for variable manufacturing overhead?

• A) $348,750
• B) $370,755
• C) $384,000
• D) $360,727

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Definitions:

Dividend Payout Ratio

A financial metric that shows what portion of a company's earnings are distributed to shareholders in the form of dividends.

External Financing

Describes the funds a business acquires from sources outside the company, such as bank loans, venture capital, or issuing bonds and stocks to support operations or expansion.

Sustainable Growth Rate

The maximum rate at which a company can grow its revenues and profits without increasing its financial leverage or debt.

Net Income

Represents the company's total earnings, reflecting the company's profit after all costs and taxes have been subtracted from revenues.