Prevlars budget for variable overhead and fixed overhead revealed the following information for an anticipated 41,600 hours
Fantastic news! We've Found the answer you've been seeking!
Question:
Prevlar’s budget for variable overhead and fixed overhead revealed the following information for an anticipated 41,600 hours of activity: variable overhead, $428,480; fixed overhead, $640,000.
The company actually worked 44,600 hours and actual overhead incurred was: variable, $442,500; fixed, $640,000.
Required:
- Compute the company's total cost variance for variable overhead and fixed overhead if the firm uses a static budget to help assess performance.
- Compute the company's total cost variance for variable overhead and fixed overhead if the firm uses a static budget to help assess performance. Assuming the use of a flexible budget.
- Which of the two budgets (static or flexible) is preferred for performance evaluations?
Related Book For
Financial Accounting: A Business Process Approach
ISBN: 978-0136115274
3rd edition
Authors: Jane L. Reimers
Posted Date: