Aquaflask Corporation manufactures industrial-sized water bottles and uses budgeted machine-hours to allocate variable manufacturing overhead. The following information pertains to the company's manufacturing overhead data. Budgeted output units Budgeted machine-hours Budgeted variable manufacturing overhead costs for 15,000 units Actual output units produced Actual machine-hours used Actual variable manufacturing overhead costs 15,000 units 5,000 hours $161,250 22,000 units 7,200 hours $242,000
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Based on the attached image, answer the following question:
1.What is the budgeted variable
2. What is the flexible-budget amount for variable manufacturing overhead?
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