Budget, Cost Accounting

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a company has the budget for manufacturing overhead based on direct labor hours. budgeting at 10,000 direct labor hours are as follows. Variable costs= 160000
Fixed Costs = 80,000
Tottal OH cost 240,000
1)at an activity level of 8000 direct labor hours, the flexible budget would show the budgeted amount for total overhead costs as:

2) the Company operated at 8000 direct labor hours, and incurred a cost of 230,000. The resulting variance would be:

Please show work so i can figure out how to solve problem in the future

 


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