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  1. avatar says

    HI sir there one problem in Flexed budget on Variable overhead side
    Variable OH Per unit = $12,500 / 10,000 Units = $2 per unit
    if we multiply it by actual level of activity we will get $24,000 for variable overhead in flexed budget

  2. avatar says

    Hi johnmoffat

    A Co. uses Flexed Budgets:The fixed budget last month was baase on 100% Activity level and show material cost of
    $200,000. Last month’s actual material cost were compared with the flexed budget and show the follow:

    material Actual 120,000 Variance 5000 favourable

    What was the actual activity last month as a percentage

    • Avatar of johnmoffat says

      Because the variance was 5000 favourable, it means that the flexed budget will show materials of 125,000.

      The original budget at 200,000, and so the actual activity must have been 125,000/200,000 x 100%

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