1. Funk Co. expects to produce 48,000 units for the year. The company’s flexible budget for 48,000 units of production shows variable overhead costs of $72,000 and fixed overhead costs of $64,000. For the year, the company incurred actual overhead costs of $122,800 while producing 40,000 units. Compute the controllable overhead variance.
2. Aigne Corp. reports the following for November. Compute the controllable overhead variance for November.
Actual total factory overhead incurred
$28,175
Standard factory overhead:
Variable overhead
$3.10 per unit produced
Fixed overhead
($12,000/6,000 predicted units to be produced)
$2 per unit
Predicted units produced
6,000 units
Actual units produced
4,800 units
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