Gus Corporation manufactured 10,000 golf bags during April. The fixed overhead cost-allocation rate is $40.00 per machine-hour.

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Question:

Gus Corporation manufactured 10,000 golf bags during April. The fixed overhead cost-allocation rate is $40.00 per machine-hour. The following fixed overhead data pertain to March.
What is the flexible-budget amount?
Actual Static Budget
Production 10,000 units 12,000 units
Machine-hours 5,100 hours 6,000 hours
Fixed overhead costs for March $244,000 $240,000
A. $240,000
B. $204,000
C. $244,000
D. $200,000