At the beginning of the period, the Cutting Department budgeted direct labor of $131,000, direct materials of $154,000 and fixed factory overhead of $12,900 for 7,100 hours of production. The department actually completed 10,700 hours of production. The appropriate total budget for the department, assuming it uses flexible budgeting, is Round your final answer to the nearest dollar. Do not round interim calculations. a.$448,948 b.$442,407 c.$297,900 d.$304,441

b.$442,407

Explanation:

The computation of the total budget amount is shown below:

Direct labor ($131,000 ÷ 7,100 hours) × 10,700 hours   $197,422.54

Direct material ($154,000  ÷ 7,100 hours) × 10,700 hours  $232,084 .51

Fixed Factory Overhead            $12,900    

Total Budget         $442,407.05

We simply added the direct labor, direct material and fixed factory overhead cost so that the total budget amount could come

Plus, we applied the unitary method for calculation part

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