I'm having a difficult time understanding flexible budget variance and flexible budget overhead for actual output.
I've attached an example of a question I'm trying to work through to understand the process.
Homework: Homework Chapter 13 (optional) Score: 0.81 of1 pt ' 4 50f5(5 complete)v p HW Score: 88.2%, 4.41 of5 pts E10-34A (similar to) g5 Question Help a CenterWare is a manufacturer of ceramic bottles. a (Click the icon to view the standards.) a (Click the icon to view the actual results.) Requirements 1. Compute the total manufacturing overhead variance. What does this tell management? 2. Compute the overhead exible budget variance. What does this tell management? '4, mum..- t..- Manor-.. ..-......- MM\"- Wt.-. A\". m- tell management? | Actual overhead cost variance. What does this tell management? | Flexible budget overhead for actual outputs ng overhead variance. (Enter the result as a positive number. Label the variance as favourable (F) or unfavourable (U).) Production volume variance Sales volume variance Standard overhead allocated to production lvl Total overhead variance Choose from any list or enter any number in the input elds and then click Check Answer. Homework: Homework Chapter 13 (optional) Score: 0.81 of1 pt ' 4 5of5 (5 complete)v ' p HW Score: 88.2%, 4.41 of5 pts @ E1 O-34A (similar toll 0 Data Table 0 Data Table The company has these standards: Last month, CenterWare reported the following actual results for the production of 69,000 bottles: Direct materials (clay) _________________ 13 kg per bottle, at a cost of $044 per kg Direct materials .................... 1.5 kg per bottle, at a cost of $0.70 per kg Direct labour ......................... 1/5 hour per bottle, at a cost of $14.00 per hour Direct labour ...................... 1/4 hour per bottle, at a cost of $12.70 per hour Static budget variable overhead ......... $70,500 Actual variable overhead ............ $104,600 Static budget fixed overhead ............ $30,500 Actual xed overhead ............... $28,700 Static budget direct labour hours ......... 10,000 hours Static budget number of bottles .......... 52,000 Print ' CenterWare allocates manufacturing overhead to production based on standard direct labour hours. ' Print ' Done ' Choose from any list or enter any number in the input fields and then click Check Answer, '----------- -r- l ____'___ @ E10-34A (similar to); CenterWare is a manufacturer of ceramic bottles. a (Click the icon to View the standards.) a (Click the icon to View the actual results.) Requirements 1. Compute the total manufacturing overhead variance, What does this tell management? 2. Compute the overhead exible budget variance. What does this tell management? 3. Compute the production volume variance, What does this tell management? Requirement 1. Compute the total manufacturing overhead variance. What does this tell management? Identify the formula labels and compute the total manufacturing overhead variance. (Enter the result as a positive number. Label the variance as favourable (F) or unfavourable (U).) Total overhead variance: Total overhead variance Choose from any list or enter any number in the input fields and then click Check Answer. i E; Question Help ' a
