Fogel Company expects to produce and sell 112.000 units for the period. The company's flexible budget for 112,000 units shows variable overhead costs of $156.800 and fixed overhead costs of $133,000. The company incurred actual total overhead costs of $254,800 while producing 106,000 units. a. Compute the total variable overhead costs for the flexible budget when producing 106,000 units. b. Compute the budgeted (flexible) total overhead when producing 106,000 units. c. Compute the controllable variance and identify it as favorable or unfavorable. (Round "Variable amount per unit" to 2 decimal places.) Flexible Budget Flexible Budget at Variable Amount per Total Fixed Cos 112,000 units 106,000 units Unit Total flexible budget Controllable Overhead Variance Controllable overhead variance

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A: A flexible budget is prepared by modifying the static budget according to a different volume or…

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A: Variable cost per direct labor hour = $300,000 / 60,000 DLHs = $5 per DLH

Q: egan, Incorporated uses the following standard costs per unit for one of its products: Direct labor…

A: The difference between the actual amount of an expense and the expected (or budgeted) amount of an…

Q: The Perry Corporation recorded the following budgeted and actual information relating to fixed…

A: Fixed overhead volume variance = Absorbed fixed overhead - Budgeted fixed overhead Absorbed fixed…

Q: Laurie Inc.’s static budget for 10,000 units of production includes $60,000 for direct materials,…

A: A flexible budget is that budget which includes all the flexibility and change in the output. In…

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A: Variance is calculated by measuring the difference between the actual results and the flexible…

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Q: Beech Company produced and sold 105,000 units of its product in May. For the level of production…

A:

Q: Spiral Company’s budgeted fixed factory overhead cost is P50,000 per month plus a variable factory…

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Q: Fogel Co. expects to produce 116,000 units for the year. The company’s flexible budget for 116,000…

A:

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Q: Jase Manufacturing Co.'s static budget for 10,000 units of production includes $40,000 for direct…

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Q: Montgomery Company has developed the following flexible budget formulas for its four overhead…

A: Total budgeted overhead is calculated as total of fixed Expenses and variable expenses.

Q: K Company created a set budget of 50,000 direct labour hours, with variable overhead expenses of…

A: The variable costs are changed with the level of production and fixed costs remains constant for…

Q: Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours.…

A: The flexible budget report compares the actual costs incurred and budgeted costs at actual…

Q: Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours.…

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A: Contribution margin per unit  = Total Contribution margin at flexible budget/Flexible budget units…

Q: A company set the total budgeted direct labor cost at P75,000 for the month for producing 5,000…

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A: Standards are established in advance in respect of sales, cost, efficiency, etc. From the standards,…

Q: The following data were gathered from the Pal Company's overhead costs for the January, 2020…

A: Solution: Fixed overhead volume variance is calculated using formula = Fixed overhead applied -…

Q: Delaware Corp. prepared a master budget that included $16,200 for direct materials, $32,400 for…

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Q: Delaware Corp. prepared a master budget that included $24,360 for direct materials, $28,100 for…

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Q: If absorption costing principles were applied, the profit for the period compared to the marginal…

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A: The correct answer is Option (4).

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Q: Management at Marvin Limited has provided the following budgeted and actual annual figures for one…

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Q: The following data are available for the most recent year of operations for Slacker & Sons. The…

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Q: After selling 4,320 units during the period, Dole Corp. prepared a flexible budget that included…

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Q: During the first quarter, skeleton produced 60,000 units and incurred total manufacturing costs of…

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Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.