Monday, March 10, 2008

Calculate Total Overhead Budget

In a computer manufacturing firm, a flexible budget for 20,000 hours showed variable manufacturing overhead of $4 per hour and fixed manufacturing overhead of $2.50 per hour. Assume 10,000 hours is within the relevant range, calculate total overhead budget for 10,000 hours.

VC = $4 x 10,000 = $40,000
FC = $2.50 x 20,000 = $50,000

1 comment:

Anonymous said...

Thank you.

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