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

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 15EA: Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per...

See similar textbooks

Similar questions

The following details relates to the operations of a company for budgeted output of 10000units; selling price- GHC100, total variable cost- GH¢200000, and total fixed cost- GHC400000. At what quantity and value will the company breakeven? A. 5000units and GHC50000 B. 5000units and GHC5300 OC. 4500units and GHC45000 D. 4000unit and GHC40000
Vaughn Manufacturing uses flexible budgets. At normal capacity of 22000 units, budgeted manufacturing overhead is: $45100 for variable costs and $270000 for fixed costs. If Vaughn Manufacturing had actual overhead costs of $318800 for 25000 units produced, what is the difference between actual and budgeted costs? (do not round intermediate calculation.) O $2450 favorable O$7350 unfavorable O$9800 favorable O $2450 unfavorable
Vaughn Manufacturing uses flexible budgets. At normal capacity of 15000 units, budgeted manufacturing overhead is: $90000 for variable costs and $180000 for fixed costs. If Vaughn had actual overhead costs of $225000 for 20000 units produced, what is the difference between actual and budgeted costs? O $75000 unfavorable. O $75000 favorable. O$300000 favorable. O $225000 unfavorable.
If a company plans to sell 40000 units of product but sells 60000 units, the most appropriate comparison of the cost data associated with the sales will be by a budget based on O 60000 units of activity. O40000 units of activity. O the original planned level of activity. O 50000 units of activity.
Webster has the following budgeted costs at its anticipated production level (expressed in hours): variable overhead, P150,000; fixed overhead, P240,000. If Webster now revises its anticipated production slightly downward, it would expect: * A.total fixed overhead of P240,000 and a lower hourly rate for variable overhead. B.total fixed overhead of P240,000 and the same hourly rate for variable overhead. C. total fixed overhead of P240,000 and a higher hourly rate for variable overhead. D. total variable overhead of less than P150,000 and a lower hourly rate for variable overhead. E. total variable overhead of less than P150,000 and a higher hourly rate for variable overhead.
At zero direct labor hours in a flexible budget graph, the total budgeted cost line intersects the vertical axis at $30,000. At 10,000 direct labor hours, a horizontal line drawn from the total budgeted cost line intersects the vertical axis at $90,000. Fixed and variable costs may be expresses as.
A company predicts its production and sales will be 24,000 units. At that level of activity, its fixed costs are budgeted at $300,000, and its variable costs are budgeted at $246,000. If its activity level declines to 20,000 units, what will be its budgeted fixed costs and its variable costs? a. Fixed, $300,000; variable, $246,000 b. Fixed, $250,000; variable, $205,000 c. Fixed, $300,000; variable, $205,000 d. Fixed, $250,000; variable, $246,000 e. Fixed, $300,000; variable, $300,000
At zero direct labor hours in a flexible budget graph, the total budgeted cost line intersects the vertical axis at $30000. At 20000 direct labor hours, a horizontal line drawn from the total budgeted cost line intersects the vertical axis at $210000. Total fixed costs and unit variable costs are: O $180000 fixed plus $2 per direct labor hour variable. O $30000 fixed plus $9 per direct labor hour variable. O $180000 fixed plus $9 per direct labor hour variable. O $30000 fixed plus $11 per direct labor hour variable.
Dealer Enterprises (DE) anticipated that 100,000 process hours would be worked during an upcoming accounting period when, in fact, 108,000 hours were actually worked. One of the company's cost functions is expressed as follows: Y = $18PH + $800,000 where PH is defined as process hours What budgeted dollar amount would appear in DE's static budget and flexible budget for the preceding cost function?
Based on predicted production of 24,200 units, a company budgets $330,000 of fixed costs and $435,600 of variable costs. If the company actually produces 19,700 units, what are the flexible budget amounts of fixed and variable costs? Flexible Budget. Flexible Budget at Variable Amount per Unit Total Fixed Cost 24,200 units 19,700 units Total budgeted costs 0. $
Use the following information for the Quick Study below. (Algo) [The following information applies to the questions displayed below.] The fixed budget for 20,800 units of production shows sales of $540,800; variable costs of $62,400; and fixed costs of $141,000. If the company actually produces and sells 26,200 units, calculate the flexible budget income. Sales Variable costs Contribution margin Fixed costs Fixed costs ------Flexible Budget------ Variable Amount Total Fixed per Unit Cost $ 20 3 17 $ 142,000 20,800 units 26,200 units $ $ ------Flexible Budget at ------ $ 432,000 $ 64,800 367,200 $ 142,000 225,200 $ 538,000 80,700 457,300 142,000 315,300
* Your answer is incorrect. Ayayai Company has prepared a graph of flexible budget data. At zero direct labor hours, the total budgeted cost line intersects the vertical axis at $18,400. At 8,000 direct labor hours, the line drawn from the total budgeted cost line intersects the vertical axis at $68,000. How may the fixed and variable costs be expressed? (Round variable cost per direct labor hour to 2 decimal places, e.g. 1.25.) Total budgeted costs are $ 6.2 fixed plus $ 18400 per direct labor hour.