Question

Flexible budget overhead for actual outputs equation =

A) FB Overhead = Budgeted Overhead / Actual Outputs
B) FB Overhead = Actual Overhead / Budgeted Outputs
C) FB Overhead = Budgeted Overhead / Budgeted Outputs
D) FB Overhead = Actual Overhead / Actual Outputs

Answer 1

The equation for flexible budget overhead for actual outputs is FB Overhead = Budgeted Overhead / Actual Outputs.

This equation calculates the flexible budget overhead by dividing the budgeted overhead by the actual outputs.

Step-by-step explanation:

The correct equation for flexible budget overhead for actual outputs is:

FB Overhead = Budgeted Overhead / Actual Outputs

This equation calculates the flexible budget overhead by dividing the budgeted overhead by the actual outputs.

For example, if the budgeted overhead is $10,000 and the actual outputs are 500 units, the flexible budget overhead would be $20 per unit.