Rammazzotti, Inc., is looking for feedback on company performance. The company c

Question

Rammazzotti, Inc., is looking for feedback on company performance. The company compares the budget for the year with the actual costs. Data have been collected below:

Rammazzotti Inc., had the following budgeted data:

The following actually occurred:

The static budget variance for total fixed overhead is

Unit sales for 2018 26,000 Unit production for 2018 26,000 Budgeted fixed overhead for 2018: Supervision $   800 Depreciation 2,000 Rent 100 Budgeted variable costs per unit: Direct materials $0.15 Direct labor 0.20 Supplies 0.02 Indirect labor 0.05 Power 0.02

Explanation / Answer

Calculate Static budget variance for total fixed overhead :

Actual fixed overhead = (2000+850+100) = 2950

Original budget fixed overhead = (2000+800+100) = 2900

Static budget variance = 2900-2950 = 50 Unfavorable

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.