Question

Questions 1 and 2 refor to the following information: OnJanuary 1, 2017, X Company developed the following overhead cost function i r the is the number of units produced. The following additional information for 2017 is avai year: 8206,000 + 89.9X, Budgeted production Actual production Actual fixed costs Actual variable costs per unlt 9,900 units 10,900 units $210,000 $10.21 8 pti. What was the 2017 master (static) budget for total overhend? 1. AO $98,109 BO $206,000 СО$304,100 DO 831 1,079 EOs3 14,019 8 pt2. What was the 2017 fexible budget for total overhead? 2AO $98,109 B $206,000 CO$304,109 O 311,079 EO s14,01 ing X Company utility cost in 2017

Answer 1

1.

Master budget for total overhead = Fixed overhead + Variable overhead

= $206,000 + (9,900 * $9.91)

= $206,000 + $98,109

= $304,109

2.

Flexible budget = Fixed overhead + Variable overhead

= $206,000 + (10,900 * $9.91)

= $206,000 + $108,019

= $314,019