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Manufacturing Overhead Cost/CVP Graph

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.

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.

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