1 answer

Imported From Fr... Nolan Company uses a budgeted direct labor rate of $10 per hour. The...

Question:

Imported From Fr... Nolan Company uses a budgeted direct labor rate of $10 per hour. The company expects to operate at 8,000
Imported From Fr... Nolan Company uses a budgeted direct labor rate of $10 per hour. The company expects to operate at 8,000 direct labor hours each month. In March, direct labor totaling $79,790 is incurred in working 7,900 direct labor hours. A FLEXIBLE budget report would indicate that direct labor for March was $ 100 favorable $1,000 unfavorable. $ 790 unfavorable O $ 210 favorable. Question 6 1 pts Langdon Manufacturing Company prepared a STATIC budget based on 50,000 direct labor hours which showed $150,000 for variable overhead and $250,000 for fixed overhead. Langdon then prepared a FLEXIBLE budget for 40,000 labor hours. How much is total amount of budgeted overhead costs at 40,000 labor hours? $370,000 $320,000 $400,000 $350,000

Answers

1. Flexible budget variance

= (10*7900) - 79,790

= 79,000 - 79,790

= 790 Unfavorable

.

2. Budgeted overhead cost

= (150,000/50,000)*40,000 + 250,000

= 370,000

.

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