Question

X Company's 2019 budgeted overhead cost function was C=$9.30X + $233,700, where X is the number of units produced. The following information is also available for 2019:

	Master	Actual
	Budget	Results
Production	10,400 units	13,300 units
Total variable costs	$96,720	$124,244
Total fixed costs	$233,700	$235,833

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

A: $123,690

B: $330,420

C: $332,553

D: $357,390

E: $359,523

F: $360,077

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: $-29,657

B: $-27,524

C: $-3,224

D: $-2,687

E: $-2,150

F: $-554

Answer 1

1)	Correct Option B i.e. $330420
	Total overhead as per static budget at 10400 units level
	= Total variable + total fixed cost
	=96720 + 233700
	330420
2)	Correct Option D i.e. -$2687
	Flexible Budget variannce = Standard amount for actual output - Actual Amount
	=(9.3*13300 + 233700) - (124244+ 235833)
	-2687