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Jackson Company's static budget for variable overhead and fixed overhead revealed the following information for 25,000 hours of activity: variable overhead, $150,000; fixed overhead, $200,000.
The company actually worked 30,000 hours, and actual overhead incurred was: variable, $190,000; fixed, $230,000
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 performanceb. Repeat part "a" assuming the use of a flexible budget.c. Which of the two budgets (static or flexible) is preferred in performance evaluations? Why?
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The Tiernan Gallery and Art Museum distributes to its visitors a printed guide to its collections. There are about 18000 visitors per year. Holding costs for the brochures are 20% and it costs $30 to place an order with the printer.
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