Waterway Industries uses flexible budgets. At normal capacity of 26000 units, budgeted manufacturing overhead includes $182000 o variable costs and $360000 of fixed costs. If Waterway had actual overhead costs of $546000 for 40000 units produced, what is the difference between actual and budgeted costs? O$98000 favorable O$94000 favorable O $4000 unfavorable O $94000 unfavorable

Waterway Industries uses flexible budgets. At normal capacity of 26000 units, budgeted manufacturing overhead includes $182000 o variable costs and $360000 of fixed costs. If Waterway had actual overhead costs of $546000 for 40000 units produced, what is the difference between actual and budgeted costs? O$98000 favorable O$94000 favorable O $4000 unfavorable O $94000 unfavorable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A company's flexible budget for 9,000 units of production showed per unit contribution margin of $4.80 and fixed costs, $20,000. The income expected If the company produces and sells 14,000 units is: Multiple Choice $47,200. $3.000. $67,200. $23.200. $20.000. A company's flexible budget for 13,300 units of production showed sales, $43,890; variable costs, $15,960; and fixed costs, $15,400, The income expected if the company produces and sells 17,300 units is: Multiple Choice $3,333. $12,530. $25,500. $20,930. $26,313.
Ring Company makes two models of phones - Blue and Yellow. Blue is a basic model and Yellow has more advanced features. Data on the two phones is as follows: Blue Yellow Expected production 50,000 phones 150,000 phones Direct materials and Direct labour costs $25 $40 Ring Company's accountant prepares the following budget that she plans to use to prepare an activity based analysis the costs of Blue and Yellow: \table[[, Blue, Yellow, Budgeted Cost],[,,,], [ Equipment setup, 100 setups, 60 setups,$88,000 ง Required: 1. "Calculate the manufacturing overhead allocation rate for each activity using ABC 2. Calculate the cost of the Blue Phone." 3. If the company wants a markup on cost of 75 percent calculate the selling price of the Blue Phone
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