Please help with parts e, and k in the attached problem.
The ABC Company has an automated production process, and production activity is quantified in terms of machine hours. It uses a standard-costing system. The annual static budget for
20x6 called for 6,000 units to be produced, requiring 30,000 machine hours. The standard-overhead rate for the year was computed using this planned level of production. The 20x6 manufacturing cost report follows.
The company produced a total of 6,200 units during 20x6, requiring 32,000 machine hours. The preceding manufacturing cost report compares the company's actual cost for the year with the static budget and the flexible budget for two different activity levels.
Compute the following amounts. For variances, indicate favorable or unfavorable where appropriate. Answers should be rounded to two decimal places when necessary.
e. The variable-overhead rate per machine hour in a flexible-budget formula. (Hint: Use the high-low method to estimate cost behavior.)
k. The total budgeted manufacturing cost (in thousands of dollars) for an output of 6,050 units. (Hint: Use the flexible-budget formula.)
You will find the answer to this puzzling question inside...