Business, 18.12.2019 23:31 kiaragoodman7117

Montgomery company has developed the following flexible budget formulas for its four overhead items: overhead item fixed cost variable rate per direct labor hour maintenance $10,000 $ 3.00 power $ 1,500 $ 0.30 indirect labor cost $12.00 equipment lease $ 7,000 total $18,500 $15.30 montgomery normally produces 15,000 units (each unit requires 0.30 direct labor hours); however, this year 19,000 units were produced with the following actual costs: overhead item actual costs maintenance $14,000 power $ 2,200 indirect labor cost $70,000 equipment lease $ 7,000 total costs $93,200 the total budgeted overhead for an expected activity level of 10,000 units

a.$64,400.
b.$139,400.
c.$12,400.
d.$124,000.
e. none of these choices are correct.

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Montgomery company has developed the following flexible budget formulas for its four overhead items:...