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Prevlar's budget for variable overhead and fixed overhead revealed the following information for an anticipated 41,100 activity: variable overhead, $402,780; fixed overhead, $627,500. The company
Prevlar's budget for variable overhead and fixed overhead revealed the following information for an anticipated 41,100 activity: variable overhead, $402,780; fixed overhead, $627,500. The company actually worked 44,100 hours and actual overhead incurred was: variable, $412,500; fixed, $630,000. Required: A. Compute the company's total cost variance for variable overhead and fixed overhead if the firm uses a static budget assess performanc B. Compute the company's total cost variance for variable overhead and fixed overhead if the firm uses a static budget assess performance. Assuming the use of a flexible budget. C. Which of the two budgets (static or flexible) is preferred for performance evaluations? A. Actual B. Flexible budget C. Preferred for performance evaluations
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