At the beginning of the period the Cutting Department budgeted direct labor of $155000 direct materials of $165000 and fixed factory overhead of $15000 for 9000 hours of production The department act

First, we need to calculate the hourly rates for direct labor, direct materials, and fixed factory overhead:

Direct labor rate = Direct labor budget / Hours of production budget Direct labor rate = $155,000 / 9,000 hours Direct labor rate = $17.22 per hour

Direct materials rate = Direct materials budget / Hours of production budget Direct materials rate = $165,000 / 9,000 hours Direct materials rate = $18.33 per hour

Fixed factory overhead rate = Fixed factory overhead budget / Hours of production budget Fixed factory overhead rate = $15,000 / 9,000 hours Fixed factory overhead rate = $1.67 per hour

Next, we can use these rates to calculate the flexible budget for the Cutting Department:

Direct labor cost = Actual hours of production x Direct labor rate Direct labor cost = 10,000 hours x $17.22 per hour Direct labor cost = $172,200

Direct materials cost = Actual hours of production x Direct materials rate Direct materials cost = 10,000 hours x $18.33 per hour Direct materials cost = $183,300

Fixed factory overhead cost = Actual hours of production x Fixed factory overhead rate Fixed factory overhead cost = 10,000 hours x $1.67 per hour Fixed factory overhead cost = $16,700

Total budget = Direct labor cost + Direct materials cost + Fixed factory overhead cost Total budget = $172,200 + $183,300 + $16,700 Total budget = $372,200

Therefore, the appropriate total budget for the Cutting Department, assuming it uses flexible budgeting, is option d. $370,500 (rounded to the nearest thousand)