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On the basis of the budget reports, management analyzes differences between actual and planned results. management may take corrective action. management may modify the future plans. All of these answers are correct. The purpose of the departmental overhead cost report is to control selling expense. determine the efficient use of materials. control overhead costs. control indirect labor costs. The purpose of the sales budget report is to control selling expenses. control sales commissions. determine whether income objectives are being met. determine whether sales goals are being met. The comparison of differences between actual and planned results appears on the company's external financial statements. is done by the external auditors. is usually done orally in departmental meetings. appears on periodic budget reports. Astatic budget is changed only if the actual level of activity is different than originally budgeted. is useful in evaluating a manager's performance by comparing actual variable costs and planned variable costs. should not be prepared in a company. shows planned results at the original budgeted activity level. Waterway Industries uses flexible budgets. At normal capacity of 22000 units, budgeted manufacturing overhead is: $88000 variable and $200000 fixed. If Waterway had actual overhead costs of $293200 for 24000 units produced, what is the difference between actual and budgeted costs? $2800 favorable. $11200 favorable. $2800 unfavorable. $8400 unfavorable. Current Attempt in Progress A company's planned activity level for next year is expected to be 100000 machine hours. At this level of activity, the company budgeted the following manufacturing overhead costs: A flexible budget prepared at the 90000 machine hours level of activity would show total manufacturing overhead costs of $549000. $510000. $459000. $559000. Crane Company produced 220000 units in 108000 direct labor hours. Production for the period was estimated at 234000 units and 117000 direct labor hours. A flexible budget would compare budgeted costs and actual costs, respectively, at 122000 hours and 108000 hours. 108000 hours and 108000 hours. 117000 hours and 108000 hours. 122000 hours and 117000 hours. A company's planned activity level for next year is expected to be 100000 machine hours. At this level of activity, the company budgeted the following manufacturing overhead costs: A flexible budget prepared at the 90000 machine hours level of activity would show total manufacturing overhead costs of $200100.$139000$192600$125100 Concord Corporation produced 230000 units in 105000 direct labor hours. Production for the period was estimated at 240000 units and 120000 direct labor hours. A flexible budget would compare budgeted costs and actual costs, respectively, at 115000 hours and 120000 hours. 105000 hours and 105000 hours. 115000 hours and 105000 hours. 120000 hours and 105000 hours

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