Solution Enterprises incurred $828,000 of fixed overhead during the period. During that same period, the company applied $845,000 of fixed overhead to production and reported an unfavorable budget variance of $41,000. How much was Solution's budgeted fixed overhead?

Question

Armani Wang

Business

28 October, 01:41

Solution Enterprises incurred $828,000 of fixed overhead during the period. During that same period, the company applied $845,000 of fixed overhead to production and reported an unfavorable budget variance of $41,000. How much was Solution's budgeted fixed overhead?

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Answers (1)

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Jenny Eaton · Answer 1

Budgeted fixed overhead = $787,000

Explanation:

Budget variance = Actual overhead-budgeted overhead

-41000 = 828000-X

X = 787000

So answer is $787000