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.)
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.)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...
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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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Transcribed Image Text: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.)
Variable Costs
Fixed Costs
Budgeted (flexible)
overhead
Variable Amount Total Fixed
per Unit
Cost
Controllable Variance
Controllable variance
------Flexible Budget at -
107,000
units
$ 149,800
132,000
$ 281,800
100,000
units
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