Fogel Company expects to produce and sell 103,000 units for the period. The company's flexible budget for 103,000 units shows variable overhead costs of $144,200 and fixed overhead costs of $127,000. The company incurred actual total overhead costs of $256,800 while producing 97,000 units. a. Compute the total variable overhead costs for the flexible budget when producing 97,000 units. b. Compute the budgeted (flexible) total overhead when producing 97,000 units. c. Compute the controllable variance and identify it as favorable or unfavorable. Note: Round "Variable amount per unit" to 2 decimal places. Variable Costs Fixed Costs Budgeted (flexible) overhead Controllable variance -Flexible Budget at Variable Amount per Unit Total Fixed Cost 103,000 units 97,000 units 09 144,200 Controllable Variance 127,000 $ 271,200
Fogel Company expects to produce and sell 103,000 units for the period. The company's flexible budget for 103,000 units shows variable overhead costs of $144,200 and fixed overhead costs of $127,000. The company incurred actual total overhead costs of $256,800 while producing 97,000 units. a. Compute the total variable overhead costs for the flexible budget when producing 97,000 units. b. Compute the budgeted (flexible) total overhead when producing 97,000 units. c. Compute the controllable variance and identify it as favorable or unfavorable. Note: Round "Variable amount per unit" to 2 decimal places. Variable Costs Fixed Costs Budgeted (flexible) overhead Controllable variance -Flexible Budget at Variable Amount per Unit Total Fixed Cost 103,000 units 97,000 units 09 144,200 Controllable Variance 127,000 $ 271,200
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...
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
Transcribed Image Text:Fogel Company expects to produce and sell 103,000 units for the period. The company's flexible budget for 103,000 units shows
variable overhead costs of $144,200 and fixed overhead costs of $127,000. The company incurred actual total overhead costs of
$256,800 while producing 97,000 units.
a. Compute the total variable overhead costs for the flexible budget when producing 97,000 units.
b. Compute the budgeted (flexible) total overhead when producing 97,000 units.
c. Compute the controllable variance and identify it as favorable or unfavorable.
Note: Round "Variable amount per unit" to 2 decimal places.
Variable Costs
Fixed Costs
Budgeted (flexible) overhead
Controllable variance
-Flexible Budget at
Variable Amount per
Unit
Total Fixed Cost
103,000 units
97,000 units
09
144,200
Controllable Variance
127,000
$ 271,200
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