$49500 overhead applied to production if 9,000 hours were used in the department during the month. Here , is the full attached questions.
Direct labor hours = 9,000 ,10,000 , 11,000
Variable factory overhead cost ( $4.5)
4.5*9000= 40500
4.5*10000=45000
4.5*11000=49500
A flexible budget plan is one where expenditure adjusts or flexes in response to volume or movement changes.
A flexible expenditure strategy is more valuable and complex than a static one. (The static plan amounts remain constant. They remain unchanged from the amounts accumulated at the time the static expenditure plan was established and approved.)
The flexible budget plan will flex because the spending will include a variable rate for each unit of activity rather than a single fixed aggregate sum for costs that vary with volume or movement. Simply put, the flexible spending plan is becoming a more valuable tool for determining an administrator's effectiveness.
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