The following information is for X Company:
What was the flexible budget variance (a positive number means a favorable variance and a
negative number means an unfavorable variance)?
Budgeted proudction 10,200 units
Actual production 11,300 units
Budgeted costs:
Total fixed $208,300
Per-unit variable $9.01
Actual costs:
Total fixed $204,780
Total variable $136,668
Solution
What was the flexible budget variance (a positive number means a favorable variance and a
negative number means an unfavorable variance)?
Total Flexible Budget Overhead = 9.01*11300 + 208300 = $ 310,113
Total actual Overhead Cost = 136668 + 204780 = $ 341,448
Flexible budget variance = Total Flexible Budget Overhead-Total actual Overhead Cost
Flexible budget variance = 310113 - 341448
Flexible budget variance = - $ 31,335