Landreth Fencing considers 3,000 direct labor hours or 50 fences to be its normal monthly capacity. Its standard variable overhead rate is $12 per direct labor hour. During the current month, $29,800 of variable overhead costs were incurred in working 2,950 direct labor hours to complete 45 fences. What is the total variable overhead flexible budget variance? Select one: O O O O O a. $2,600 F b. $6,800 F c. $5,000 U d. $8,600 U e. None of the above
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.
![Landreth Fencing considers 3,000 direct labor hours or 50 fences to be its normal monthly capacity. Its standard variable overhead rate is $12 per direct labor hour. During the current
month, $29,800 of variable overhead costs were incurred in working 2,950 direct labor hours to complete 45 fences.
What is the total variable overhead flexible budget variance?
Select one:
O a. $2,600 F
O b. $6,800 F
O
c. $5,000 U
d. $8,600 U
e. None of the above
O
O](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3537a5bf-9ba4-4d46-9d69-9809ffbc0823%2Ffc1388fa-f7dc-4145-ad4d-9d84f9f6826a%2Fztwvpq8_processed.jpeg&w=3840&q=75)
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