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    Manufacturing Overhead Cost/CVP Graph

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    Please help me with this:

    A department has budgeted monthly manufacturing overhead cost of $40,000 plus $5 per direct labor hour. The flexible budget report reflects $120,000 for total budgeted manufacturing cost for the month. What is the actual level of activity achieved during the month (OR, CAN IT NOT BE Determined?)
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    also:
    How does a graph of a flexible budget compare to a CVP graph?
    1. fixed costs appear differently
    2. variable costs appear differently
    3. sales revenues are not shown on a flexible budget graph
    4. the two are graphed identically
    Thank you.

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    https://brainmass.com/business/accounting/manufacturing-overhead-cost-cvp-graph-159105

    Solution Preview

    Hi,
    Please see the response to your posting as below:
    Please help me with this:
    A department has budgeted monthly manufacturing overhead cost of $40,000 plus $5 per direct labor hour. The flexible budget report reflects $120,000 for total ...

    Solution Summary

    solution contains calculation of actual activity level and compare a graph of a flexible budget to a CVP graph.

    $2.19

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