Security Doors Has a Standard Variable Overhead Rate of $4

question 86

Multiple Choice

Security Doors has a standard variable overhead rate of $4 per direct labour hour. The standard quantity of direct labour per unit of production is 3 hours. The company's static budget was based on 50 000 units. Actual results for the year are as follows.
What is Security Door's flexible budget for variable overhead costs for the actual output?

• A) $600 000
• B) $540 000
• C) $495 000
• D) $432 000

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