Verbatim Company budgeted $80,000 of factory overhead cost to manufacture 1,000 units in 2010. At the end

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Verbatim Company budgeted $80,000 of factory overhead cost to manufacture 1,000 units in 2010. At the end of 2010, the company found out that it manufactured only 850 units. Verbatim spent $80,000 on factory overhead in 2010. Did the plant manager do a good job in controlling factory overhead cost if
(a) The company had only fixed factory overhead,
(b) The budgeted factory overhead figure included $60,000 of variable factory overhead cost?

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Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

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