Based on a predicted level of production and sales of 15,000 units, a company anticipates...
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Accounting
Based on a predicted level of production and sales of 15,000 units, a company anticipates total variable costs of $48,000, fixed costs of $21,000, and operating income of $81,600. Based on this information, the budgeted amount of operating income for 12,000 units would be:
Multiple Choice
$61,080.
$82,080.
$13,080.
$38,400.
$120,480.
Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead spending variance.
Direct labor standard (3.00 hrs. @ $18.20/hr.)
$
54.60
per finished unit
Actual direct labor hours
86,900
hrs.
Budgeted units
29,500
units
Actual finished units produced
28,500
units
Standard variable OH rate (2.50 hrs. @ $12.80/hr.)
$
32.00
per finished unit
Standard fixed OH rate ($236,000/29,500 units)
$
8.00
per unit
Actual cost of variable overhead costs incurred
$
910,400
Actual cost of fixed overhead costs incurred
$
237,400
Multiple Choice
$201,920 favorable.
$2,500 favorable.
$2,500 unfavorable.
$200,320 unfavorable.
$200,320 favorable.
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