ce measures oals. segment in ment were aparing e to a s price mented to the of the investment center rgeted cost. on fixed company as a whole but would lower the nager rejecting an opportunity to er price (p. 580) A price established for the "sale" of goods or services from one segment rable variance (p. 565) The excess of budgeted revenue over actual revenue, or actual cost panization to another segment of the organization. e overhead efficiency variance (p. 571) That part of the variable overhead budget ce due to the difference between actual hours required and standard hours allowed for the ible overhead spending variance (p. 571) That part of the variable overhead budget sance due to the difference between actual variable overhead cost and the standard cost awed for the actual inputs used (based on direct labor hours, for example). ance (p. 563) The difference between actual and budget; variances are labeled as "favorable" ir unfavorable," usually on the basis of the arithmetic difference between actual and budget. me variance (p. 575) A fixed manufacturing overhead variance caused by actual activity being different from the estimated activity used in calculating the predetermined overhead sook dome plication rate. ed Mevel ad Mini-Exercises All applicable Mini-Exercises are available in Connect. Flexible budget Acme Company's production budget for August is 17,500 units Min and includes the following component unit costs: direct materials, $8; direct labor. 15. 510: variable overhead, $6. Budgeted fixed overhead is $35,000. Actual production in Lo August was 17,000 units. Required: Prepare a flexible budget that would be used to compare against actual production costs for August. Flexible budget and performance reporting In addition to the information for M Acme Company in Mini-Exercise 15.1, actual unit component costs incurred during 1 August include direct materials, $8.25; direct labor, $9.45; variable overhead. $6.82. L Actual fixed overhead was $33,500. Required: Prepare a performance report, including each cost component, using the following headings: Budget Cost Original Component Budget Flexed Budget Actual Cost Variance Direct formation for Acme Company in annsists of