Question

The Landrum Company provides the following standard cost data per unit of product: Variable overhead $ 8.00 Landrum anticipated that they would produce and sell 24,000 units. During the period, the company produced and sold 25,000 units, incurring $210,000 of variable overhead costs. The variable overhead flexible budget variance was: Multiple Choice $8,000 unfavorable. $8,000 favorable. $10,000 unfavorable.

Answer 1

Answer:

variable overhead flexible budget= $10,000 unfavorable

Explanation:

Giving the following information:

Variable overhead $ 8.00

The company produced and sold 25,000 units

Incurred $210,000 of variable overhead costs.

To calculate the variable overhead flexible budget, we need to use the following formula:

variable overhead flexible budget= actual amount - variable overhead per unit*actual units

variable overhead flexible budget= 210,000 - (8*25,000)

variable overhead flexible budget= $10,000 unfavorable