Can someone PLEASE help me with these 2 Managerial Accounting Questions?
Can someone PLEASE help me with these 2 Managerial Accounting Questions?
Can someone please help me with these 2 accounting questions?
Question 1: A marketing company expects to incur fixed expenses of $50,000 per month and variable costs of $3.00 per sales call and $2.00 per telephone call. During the month, the sales force made 100 sales calls and 500 telephone calls. Actual costs incurred included $52,000 for fixed costs and $1,200 for variable costs. What is the flexible budget variance?
a) $100 F
b) $1,900 U
c) $2,000 U
d) $2,100 U
Question 2: Knickers, Inc. has developed a variable overhead rate of $10.00 per machine hour and estimates faixed overhead as $250,000 for production up to 100,000 units per year. If the production manager estimates 9,000 machine hours for the production of 90,000 units next year, what are estimated total overhead costs?
a) $90,000
b) $250,000
c) $340,000
d) $900,000
Thank you guys so much!
Answers:
mule: Q#1. b) $1,900 U Fixed $2,000 U + Var $100 F = $1,900 U Q#2. c) $340,000 9,000 hrs x 10 = 90,000 + 250,000 = $340,000
2008-06-05 05:02:08