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Vlad1618 [11]
3 years ago
13

A company's flexible budget for the range of 35,000 units to 45,000 units of production showed variable overhead costs of $3.80

per unit and fixed overhead costs of $74,000. The company incurred total overhead costs of $209,800 while operating at a volume of 40,000 units. The total controllable cost variance is:Multiple Choice$16,200 unfavorable.$10,000 favorable.$2,800 unfavorable.$2,800 favorable.$16,200 favorable.
Business
1 answer:
Dima020 [189]3 years ago
3 0

Answer:

$16,200 favorable

Explanation:

The computation of the total controllable cost variance is shown below:

= Budgeted overhead - actual overhead

= (40,000 units × $3.80 + $74,000)  - $209,800

= ($152,000 + $74,000) - $209,800

= $226,000 - $209,800

= $16,200 favorable

Hence, the  total controllable cost variance is $16,200 favorable

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8 0
2 years ago
Naylor Company had $154,200 of net income in 2016 when the selling price per unit was $155, the variable costs per unit were $95
mihalych1998 [28]

Answer:

Units sold in 2016 = 12118.33

Explanation:

Given that

Net income = 154200

Fixed inputs = 572900

Selling price per unit = 155

Variable cost per unit = 95

Recall that

Net income = total revenue - total expenses

And that

Net income = (selling price - variable cost) × number of goods sold - fixed cost

Thus

154200 = (155 - 95)x - 572900

572900 + 154200 = 60x

727100 = 60x

x = 727100/60

x = 12,118.33 units

4 0
3 years ago
Read 2 more answers
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