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

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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Georgia Gasket Co. budgets 8,000 direct labor hours for the year. The total overhead budget is expected to amount to 20,000. The standard cost for a unit of the companys product estimates the variable overhead as follows: The actual data for the period follow: Using the four-variance method, calculate the overhead variances. (Hint: First compute the budgeted fixed overhead rate.)
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