Question

X Company's 2019 budgeted overhead cost function was C=$9.90X + $200,900, where X is the number of units produced. The following information is also available for 2019:

	Master	Actual
	Budget	Results
Production	10,700 units	13,100 units
Total variable costs	$105,930	$151,659
Total fixed costs	$200,900	$204,158

1. What was the total overhead static budget for 2019?

1. What was the total overhead static budget for 2019?

A: $129,690

B: $306,830

C: $310,088

D: $330,590

E: $333,848

F: $355,817

answer:

2. What was the total overhead flexible budget variance for 2019 [a positive number means a favorable variance and a negative number means an unfavorable variance]?

A: $-48,987

B: $-45,729

C: $-30,272

D: $-25,227

E: $-21,969

F: $-20,182

answer:

Answer 1

			Master Budget	Actual Result
	1	Production	10700	13100
		Total Variable Costs	105930	151659
		Total Fixed Costs	200900	204158
		Total Overhead Cost		355817
		Budgeted Overhead Costs:
		C=9.9X+200900
		C=9.9(10700)+200900
		306830
		Answer is B
	2	Budgeted Overhead Cost	306,830
		Less: OH Cost at Flexible Budget	355,817
		Variance-Unfavourable	-               48,987
		A