Budgeted units of production 7,000 7,500 Budgeted variable overhead costs 15,000 18,750 Budgeted fixed overhead costs ? ? Budgeted amortization including in total overhead 3,000 3,000 Budgeted cash disbursements for total overhead 20,000 23,750 1. a) What is the amount of budgeted fixed overhead? a. $8,000 b. $6,000 c. $9,000 d. $3,000
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.
|
Budgeted units of production |
7,000 |
7,500 |
|
Budgeted variable |
15,000 |
18,750 |
|
Budgeted fixed overhead costs |
? |
? |
|
Budgeted amortization including in total overhead |
3,000 |
3,000 |
|
Budgeted cash disbursements for total overhead |
20,000 |
23,750 |
1. a) What is the amount of budgeted fixed overhead?
a. $8,000
b. $6,000
c. $9,000
d. $3,000
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
