A flexible budget for 15,000 hours revealed variable manufacturing overhead of $90,000 and fixed manufacturing overhead of $120,000. The budget for 25,000 hours would reveal total overhead costs of:

$270,000

Explanation:

The computation of the total overhead cost is shown below:

= Variable manufacturing overhead cost + fixed manufacturing overhead cost

where,

Variable manufacturing overhead cost is

= $90,000 ÷ 15,000 hours × 25,000 hours

= $150,000

And, the fixed manufacturing overhead is $120,000

So, the total overhead cost is

= $150,000 + $120,000

= $270,000

answer; ///the above statement is (false) .

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o