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Based on a predicted level of production and sales of 15,000 units, a company anticipates...

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Accounting

Based on a predicted level of production and sales of 15,000 units, a company anticipates total variable costs of $48,000, fixed costs of $21,000, and operating income of $81,600. Based on this information, the budgeted amount of operating income for 12,000 units would be:

Multiple Choice

$61,080.

$82,080.

$13,080.

$38,400.

$120,480.

Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead spending variance.

Direct labor standard (3.00 hrs. @ $18.20/hr.) $ 54.60 per finished unit
Actual direct labor hours 86,900 hrs.
Budgeted units 29,500 units
Actual finished units produced 28,500 units
Standard variable OH rate (2.50 hrs. @ $12.80/hr.) $ 32.00 per finished unit
Standard fixed OH rate ($236,000/29,500 units) $ 8.00 per unit
Actual cost of variable overhead costs incurred $ 910,400
Actual cost of fixed overhead costs incurred $ 237,400

Multiple Choice

$201,920 favorable.

$2,500 favorable.

$2,500 unfavorable.

$200,320 unfavorable.

$200,320 favorable.

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