Fearless Frank's Fertilizer Farm produces fertilizer and distributes the product by using his tanker trucks....
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Fearless Frank's Fertilizer Farm produces fertilizer and distributes the product by using his tanker trucks. Frank's uses budgeted fleet hours to allocate variable manufacturing overhead. The following information pertains to the company's manufacturing overhead data: Budgeted output units 600 truckloads Budgeted fleet hours 450 hours Budgeted pounds of fertilizer 24,000,000 pounds Budgeted variable manufacturing overhead costs for 600 loads $75,000 Actual output units produced and delivered 630 truckloads Actual fleet hours 436 hours Actual pounds of fertilizer produced and delivered 25,200,000 pounds Actual variable manufacturing overhead costs $76,500 What is the flexible-budget amount for variable manufacturing overhead? a. $80,000 b. $78,750 c. $75,000 d. $76,500
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