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DedPeter [7]
3 years ago
14

Levelor Company's flexible budget shows $10,710 of overhead at 75% of capacity, which was the operating level achieved during Ma

y. However, the company applied overhead to production during May at a rate of $2.00 per direct labor hour based on a budgeted operating level of 6,120 direct labor hours (90% of capacity). If overhead actually incurred was $11,183 during May, the controllable variance for the month was:
Business
1 answer:
Salsk061 [2.6K]3 years ago
3 0

Answer:

The correct answer is $473 (Unfavorable).

Explanation:

According to the scenario, the given data are as follows:

Actual overhead = $11,183

Budgeted Overhead = $10,710

So, we can calculate the controllable variance by using following formula:

Controllable variance  = Actual overhead - Budgeted overhead

By putting the value, we get

Controllable variance  = $11,183 - $10,710

= $473 ( Positive shows unfavorable)

= $473 (unfavorable)

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A restaurant sells pizza at a rate of $13.57/slice. Expenses for the restaurant include raw material for pizza at $8.57 per slic
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Answer:

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Explanation:

Giving the following information:

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An outside supplier has offered to provide Maxter Corp with the 10,000 subcomponents at a $65 per unit price. If Maxter Corp acc
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Answer:

Option b ($150,000 decrease) is the correct answer.

Explanation:

Given:

Fixed manufacturing overhead,

= $65

Units,

= 10,000

According to the question,

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= 650000+200000

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then,

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