Fogel Company expects to produce and sell 120,000 units for the period. The company variable overhead costs of $168,000 and fixed overhead costs of $128,000. The company incurred actual total overhead costs of $257,800 while producing 114,000 units. a. Compute the total variable overhead costs for the flexible budget when producing 114,000 units. b. Compute the budgeted (flexible) total overhead when producing 114,000 units. c. Compute the controllable variance and identify it as favorable or unfavorable. (Round "Variable amount per unit" to 2 decimal places.) Variable Amount per Unit Total Fixed Cost -Flexible Budget at- 120,000 units $ 168,000 114,000 units
Fogel Company expects to produce and sell 120,000 units for the period. The company variable overhead costs of $168,000 and fixed overhead costs of $128,000. The company incurred actual total overhead costs of $257,800 while producing 114,000 units. a. Compute the total variable overhead costs for the flexible budget when producing 114,000 units. b. Compute the budgeted (flexible) total overhead when producing 114,000 units. c. Compute the controllable variance and identify it as favorable or unfavorable. (Round "Variable amount per unit" to 2 decimal places.) Variable Amount per Unit Total Fixed Cost -Flexible Budget at- 120,000 units $ 168,000 114,000 units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format thanku
Transcribed Image Text:16
Fogel Company expects to produce and sell 120,000 units for the period. The company's flexible budget for 120,000 units shows
variable overhead costs of $168,000 and fixed overhead costs of $128,000. The company incurred actual total overhead costs of
$257,800 while producing 114,000 units.
a. Compute the total variable overhead costs for the flexible budget when producing 114,000 units.
b. Compute the budgeted (flexible) total overhead when producing 114,000 units.
c. Compute the controllable variance and identify it as favorable or unfavorable. (Round "Variable amount per unit" to 2 decimal
places.)
Variable Costs
Fixed Costs
Budgeted (flexible) overhead
Controllable variance
Variable Amount per
Unit
Controllable Variance
Total Fixed Cost
+
120,000 units
$
-Flexible Budget at
$
168,000
128.000
296,000
114,000 units
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education