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flexible budgets. at normal capacity of 16,000 units, budgeted manufacturing overhead is: $48,000 variable and $270,000...

flexible budgets. at normal capacity of 16,000 units, budgeted manufacturing overhead is: $48,000 variable and $270,000 fixed. If stone had actual overhead costs of $321,000 in total, for 18000 units produced, the difference between actual and budgeted total costs is: $....favourable.

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Answer #1

The difference between actual and budgeted total cost variance is $36,750 Favorable.

Supporting calculations:

Budgeted overhead cost per unit = ($48,000 + $270,000) / 16,000 units

= $19.875 per unit

Total budgeted overheads for 18,000 units = $19.875 per unit * 18,000 units

= $357,750

Budgeted overhead variance = $357,750 - $321,000

= $36,750 Favorable.

Total budgeted overhead of $357,750 is more than then actual overhead of $321,000 so the result is Favorable.

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