Delaware Corp. prepared a master budget that included $16,360 for direct materials, $28,100 for direct labor, $14,315 for variable overhead, and $38,900 for fixed overhead. Delaware Corp. planned to sell 4,090 units during the period, but actually sold 4,300 units. What would Delaware’s variable overhead cost be if it used a flexible budget for the period based on actual sales? (Do not round your intermediate calculations.)

$15,050

Explanation:

The computation of the variable overhead cost in case of flexible budget is shown below:

= Actual sales units ×  Variable overhead at budgeted sales ÷ Budgeted sales   units

= 4,300 units × $14,315 ÷ 4,090 units

= $15,050

We simply applied the above formula so that the variable overhead cost could come for flexible budget

its simple as this, microeconomics is the study of economics at an individual, group or company level, macroeconomics on the other hand, is the study of a national economy as a whole.

hope it =^-^=

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