Fogel Company expects to produce and sell 116,000 units for the period. The company's flexible budget for 116,000 units shows variable overhead costs of $162,400 and fixed overhead costs of $124,000. The company incurred actual total overhead costs of $262,800 while producing 110,000 units. a. Compute the total variable overhead costs for the flexible budget when producing 110,000 units. b. Compute the budgeted (flexible) total overhead when producing 110,000 units. c. Compute the controllable variance and identify it as favorable or unfavorable. (Round "Variable amount per unit" to 2 decimal places.)
Fogel Company expects to produce and sell 116,000 units for the period. The company's flexible budget for 116,000 units shows variable overhead costs of $162,400 and fixed overhead costs of $124,000. The company incurred actual total overhead costs of $262,800 while producing 110,000 units. a. Compute the total variable overhead costs for the flexible budget when producing 110,000 units. b. Compute the budgeted (flexible) total overhead when producing 110,000 units. c. Compute the controllable variance and identify it as favorable or unfavorable. (Round "Variable amount per unit" to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Fogel Company expects to produce and sell 116,000 units for the period. The company's flexible budget for 116,000 units shows
variable overhead costs of $162,400 and fixed overhead costs of $124,000. The company incurred actual total overhead costs of
$262,800 while producing 110.000 units.
a. Compute the total variable overhead costs for the flexible budget when producing 110,000 units.
b. Compute the budgeted (flexible) total overhead when producing 110,000 units.
c. Compute the controllable variance and identify it as favorable or unfavorable. (Round "Variable amount per unit" to 2 decimal
places.)
00:44 S8
-Flexible Budget at
Book
116,000 units
110,000 units
Variable Amount per Unit
Total Fixed Cost
Variable Costs
162,400
Fixed Costs
124,000
Hint
286,400
Budgeted (fexible) overhead
Controllable Variance
terences
Controllable variance
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