Bridgestone Company
Bridgestone Company Has Developed the Following Flexible Budget

Multiple Choice

Bridgestone Company
Bridgestone Company has developed the following flexible budget formulas for its four overhead items: $$\begin{array} { l l l } & & \text { Variable rate per } \\\text { Overhead item } & \text { Fixed cost } & \text { direct labour hour } \\\text { Maintenance } & \$ 8,000 & \$ 2.00 \\\text { Power } & \$ 2,000 & \$ 0.40\end{array}$$ The company normally produces 10,000 units (each unit requires 0.10 direct labour hours) ; however, this year 15,000 units were produced with the following actual costs: $\begin{array}{ll}\text { Overhead item }&\text { Actual costs }\\\text { Maintenance } & \$ 14,000 \\\text { Power } & \$ 3,600 \\\text { Equipment lease } & \$ 5,000\end{array}$
-Refer to Bridgestone Company. Prepare an overhead budget for the expected activity level of 10,000 units. What is the total budgeted overhead?

A) $12,400
B) $17,400
C) $27,400
D) $139,400