Fogel Company expects to produce and sell 107,000 units for the period. The company's flexible budget for 107,000 units shows variable overhead costs of $149,800 and fixed overhead costs of $132,000. The company incurred actual total overhead costs of $254,800 while producing 100,000 units. a. Compute the total variable overhead costs for the flexible budget when producing 100,000 units. b. Compute the budgeted (flexible) total overhead when producing 100,000 units. c. Compute the controllable variance and identify it as favorable or unfavorable. (Round "Variable amount per unit" to 2 decimal places.)
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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