1. Funk Co. expects to produce 48,000 units for the year. The company’s flexible budget for 48,000 units of production shows variable overhead costs of $72,000 and fixed overhead costs of $64,000. For the year, the company incurred actual overhead costs of $122,800 while producing 40,000 units. Compute the controllable overhead variance.
2. Aigne Corp. reports the following for November. Compute the controllable overhead variance for November.
|
Actual total factory overhead incurred |
$28,175 |
|
Standard factory overhead: |
|
|
Variable overhead |
$3.10 per unit produced |
|
Fixed overhead |
|
|
($12,000/6,000 predicted units to be produced) |
$2 per unit |
|
Predicted units produced |
6,000 units |
|
Actual units produced |
4,800 units |