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

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter10: Standard Costing And Variance Analysis

Section: Chapter Questions

Problem 72P: Moleno Company produces a single product and uses a standard cost system. The normal production...

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Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead costs per month include supervision of 98,000, depreciation of 76,000, and other overhead of 245,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.) 3. What if Nashler Companys cost of maintenance rose to 0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?
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Flaherty, Inc., has just completed its first year of operations. The unit costs on a normal costing basis are as follows: During the year, the company had the following activity: Actual fixed overhead was 12,000 less than budgeted fixed overhead. Budgeted variable overhead was 5,000 less than the actual variable overhead. The company used an expected actual activity level of 12,000 direct labor hours to compute the predetermined overhead rates. Any overhead variances are closed to Cost of Goods Sold. Required: 1. Compute the unit cost using (a) absorption costing and (b) variable costing. 2. Prepare an absorption-costing income statement. 3. Prepare a variable-costing income statement. 4. Reconcile the difference between the two income statements.
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