HSS Company provides security services to senior executives of prominent corporations when they travel outside the United States. HSS applies both fixed and variable overhead using direct labor hours. The annual budget for one if its customers is as follows: Budgeted hours Direct labor Variable overhead Fixed overhead 800 hours $50.00 per hr. $30.00per hr. $15.00 per hr. During the year, HSS had the following activity related to this customer: Actual hours were 850 at a total cost of $44,200. Actual fixed overhead was $12,750. Actual variable overhead was $22,950. What is the Variable Overhead Flexible Budget Variance? Select one: O a. $1,050 favorable O O O b. $1,050 unfavorable c. $2,550 favorable d. $2,550 unfavorable
HSS Company provides security services to senior executives of prominent corporations when they travel outside the United States. HSS applies both fixed and variable overhead using direct labor hours. The annual budget for one if its customers is as follows: Budgeted hours Direct labor Variable overhead Fixed overhead 800 hours $50.00 per hr. $30.00per hr. $15.00 per hr. During the year, HSS had the following activity related to this customer: Actual hours were 850 at a total cost of $44,200. Actual fixed overhead was $12,750. Actual variable overhead was $22,950. What is the Variable Overhead Flexible Budget Variance? Select one: O a. $1,050 favorable O O O b. $1,050 unfavorable c. $2,550 favorable d. $2,550 unfavorable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.
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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:HSS Company provides security services to senior executives of prominent corporations when they travel outside the United States. HSS applies both fixed and variable overhead using
direct labor hours. The annual budget for one if its customers is as follows:
Budgeted hours
Direct labor
Variable overhead
Fixed overhead
800 hours
$50.00 per hr.
$30.00per hr.
$15.00 per hr.
During the year, HSS had the following activity related to this customer:
Actual hours were 850 at a total cost of $44,200.
Actual fixed overhead was $12,750.
Actual variable overhead was $22,950.
What is the Variable Overhead Flexible Budget Variance?
Select one:
O a. $1,050 favorable
O
O
O
b. $1,050 unfavorable
c. $2,550 favorable
d. $2,550 unfavorable
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