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.

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.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 6CE: Iliff, Inc., produces and sells two types of countertop ovensthe toaster oven and the convection...

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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
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.
These are True/False questions. ____ 6. If the total unit cost of manufacturing Product Y is currently $36 and the total unit cost after modifying the style is estimated to be $48, the differential cost for this situation is $12. ____ 7. A process whereby the effect of fluctuations in level of activity is built into the budgeting system is referred to as flexible budgeting. ____ 8. In an investment center, the manager has the responsibility and the authority to make decisions that affect not only costs and revenues, but also the plant assets invested in the center. ____ 9. The capital expenditures budget summarizes future plans for acquisition of fixed assets. ____ 10. The process by which management plans, evaluates, and controls long-term investment decisions involving fixed assets is called capital investment analysis.
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.
Some advantages of the dual-rate method are: (Select all that apply.) O A. Operating department managers will only use an external provider of material-handling services if it costs more than the variable rate cost per hour ($40 in our scenario here) charged by the Materials Management Department. The single-rate method therefore avoids the potential conflict of interest that can arise under the dual-rate method. O B. By charging the fixed costs of resources budgeted to be used by the operating departments as a lump sum, the dual-rate method succeeds in removing fixed costs from the operating department managers' consideration when making marginal decisions to outsource services. O C. The dual-rate method guides department managers to make decisions that benefit both the organization as a whole and each department because it signals to department managers that variable costs and fixed costs behave differently. O D. Operating department managers will only use an external provider of…
* 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.
• The standard variable overhead costs budget for CTF of 800 units with detail information as follows: 3hours/unit and $20 per labour hour. • The actual variable overhead costs budget of 1,000 units with detail information as follows: 2.6hours/unit and 28$/labour hour. • Analyse the variable overhead costs variance → Do we need to set up a flexible budget in this case? Why?
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.
Why is cengage saying - 920 is not the answer to my problem Working: 220,800/120,000 * 119500 - 220800 1.84 x 119500 - 220800 219880 - 220800 = -920 Problem: Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 120,000 units requiring 480,000 direct labor hours. (Practical capacity is 500,000 hours.) Annual budgeted overhead costs total $792,000, of which $571,200 is fixed overhead. A total of 119,500 units using 478,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $261,300, and actual fixed overhead costs were $555,750.
You can Do This (YDT) budgeted 8,000 machine hours would be incurred during production, but only 7,200 machine hours were needed. When YDT calculates its manufacturing overhead variance, will the volume variance be favorable or unfavorable? Favorable, because actual volume is less than standard volume Unfavorable, because standard volume is less than actual volume Unfavorable, because actual volume is less than standard volume Favorable, because actual volume is greater than standard volume
The company makes a product with the following costs: Direct materials→₱17.00; Direct labor→₱22.00; Variable manufacturing overhead→₱4.00; Fixed manufacturing overhead→₱504,000.00; Variable selling, general and administrative expenses→₱4.90; Fixed selling, general and administrative expenses→₱319,200. The company uses the absorption costing approach to cost-plus pricing. The pricing calculations are based on budgeted production and sales of 30,000 units per year. The company has invested ₱360,000 in this product and expects a return on investment of 15%. Tax rate is 25%. The markup on absorption cost would be closest to: a. 41.72% b. 15.00% c. 30% d. 43% e. 37.45% f. 45.30%
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