Question

Question 2 is part E,F, and G

Buckley Manufacturing reported the following budgeted and actual figures for one of its​ products:

Standard variable overhead cost per unit​ (1 hour at​ $2.00 per​ hour)	​$2.00
Actual variable overhead costs	​$4,750
Budgeted units	725
Actual units produced	300

Given this​ data, what is the total variable overhead variance for this​ product?

A. $3,300 favorable

B.​$4,150 unfavorable

C. ​$4,150 favorable

D. ​$3,300 unfavorable

F.   Easel Manufacturing budgeted fixed overhead costs of $2.75 per unit at an anticipated production level of 1,350 units. In July Easel incurred actual fixed overhead costs of $5,000 and actually produced 1,100 units.

What is​ Easel's fixed overhead budget variance for​ July?

A. $1,287.50 unfavorable

B. $1,287.50 favorable

C. $1,975.00 unfavorable

D. $1,975.00 favorable

G.

Network Enterprises incurred actual fixed manufacturing overhead costs of $22,800 for the month of September. If the fixed manufacturing overhead budget variance was a favorable $6,300 what were the budgeted fixed overhead​ costs?

A. $6,300

B. $22,800

C. $16,500

D. $29,100

Answer 1

Answer to Question E:

Standard variable overhead cost = Standard variable overhead cost per unit * Actual units produced
Standard variable overhead cost = $2.00 * 300
Standard variable overhead cost = $600

Total variable overhead variance = Actual variable overhead cost - Standard variable overhead cost
Total variable overhead variance = $4,750 - $600
Total variable overhead variance = $4,150 Unfavorable

Answer to Question F:

Budgeted fixed overhead costs = Budgeted fixed overhead costs per unit * Budgeted production level
Budgeted fixed overhead costs = $2.75 * 1,350
Budgeted fixed overhead costs = $3,712.50

Fixed overhead budget variance = Actual fixed overhead costs - Budgeted fixed overhead costs
Fixed overhead budget variance = $5,000 - $3,712.50
Fixed overhead budget variance = $1,287.50 Unfavorable

Answer to Question G:

Fixed overhead budget variance = Actual fixed overhead costs - Budgeted fixed overhead costs
-$6,300 = $22,800 - Budgeted fixed overhead costs
Budgeted fixed overhead costs = $29,100