Bavaria's Budget for Variable Overhead and Fixed Overhead Revealed the Following

question 86

Essay

Bavaria's budget for variable overhead and fixed overhead revealed the following information for an anticipated 40,000 hours of activity: variable overhead, $348,000; fixed overhead, $600,000.
The company actually worked 43,000 hours, and actual overhead incurred was: variable, $365,500; fixed, $608,000.
Required:
A. Compute the company's total cost variance for variable overhead and fixed overhead if the firm uses a static budget to help assess performance.
B. Repeat part "A" assuming the use of a flexible budget.
C. Which of the two budgets (static or flexible) is preferred for performance evaluations? Why?

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Definitions:

Gender Role

Social and behavioral norms that are widely considered appropriate for individuals of a specific sex within a given culture.

Sex Characteristics

Physical or biological traits associated with male and female bodies, including both primary and secondary features.

Embryo Stage

This term refers to a period in prenatal development that covers the first 8 to 10 weeks after fertilization, where significant growth and organ development occur.

Sexual Reassignment Surgery

A medical procedure(s) by which a person's physical sexual characteristics are altered to resemble that of their identified gender.