New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

MGMT 201: Chapter 11 Notes

by: Zach Weinkauf

MGMT 201: Chapter 11 Notes MGMT 201

Marketplace > Purdue University > Business, management > MGMT 201 > MGMT 201 Chapter 11 Notes
Zach Weinkauf

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

These notes cover chapter 11 lecture notes and homework help.
Managerial accounting
David Scott
Class Notes
Accounting, Management
25 ?




Popular in Managerial accounting

Popular in Business, management

This 2 page Class Notes was uploaded by Zach Weinkauf on Saturday April 9, 2016. The Class Notes belongs to MGMT 201 at Purdue University taught by David Scott in Spring 2016. Since its upload, it has received 21 views. For similar materials see Managerial accounting in Business, management at Purdue University.


Reviews for MGMT 201: Chapter 11 Notes


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 04/09/16
Chapter 11: Flexible Budgeting and Analysis of Overhead Costs We use flexible budgets because static budgets don’t give enough information. Flexible Budgets  Central Concept o If you can tell me what your activity was for the period, I will tell you what your costs and revenue should have been.  Advantages: o Show revenues and expenses that should have occurred at the actual level of activity. o May be prepared for any activity level in the relevant range. o Reveal variances due to good cost control or lack of. o Improve performance evaluation.  There is no flex in the fixed costs, variable costs have a standard cost and changes by amount of hours. (Budgeted variable overhead cost per unit * Total Activity Units) + Budgeted fixed overhead cost Total Budgeted Overhead Cost  Flexible budget is prepared for the same activity level as actually achieved.  Spending Variance – results from paying more or less than expected for overhead items and from excessive usage of overhead items.  Efficiency Variance – a function of the selected cost driver – does not reflect overhead control.  Budget Variance – results from paying more or less than expected for fixed overhead items. Formulas: Variable Overhead Variances: AH = Actual Hours of Activity AR = Actual Variable Overhead Rate SVR = Standard Variable Overhead Rate SH = Standard Hours Allowed 1. Actual Variable Overhead Incurred = AH * AR 2. Flexible Budget for Variable Overhead at Actual Hours = AH * SVR 3. Flexible Budget for Variable Overhead at Standard Hours = SH * SVR 4. Spending Variance = #1 above - #2 above = AH*(AR – SVR) 5. Efficiency Variance = #2 above - #3 above = SVR*(AH-SH) Fixed Overhead Variances: PFOHR = Predetermined Fixed Overhead Rate SH = Standard Hours Allowed 1. PFOHR = Budgeted Fixed Overhead / Planned Activity in Hours 2. Fixed Overhead Applied = SH * PFOHR 3. Budget Variance = Actual Fixed Overhead Incurred – Fixed Overhead Budget 4. Volume Variance = Fixed Overhead Budget – Fixed Overhead Applied (SH * PFOHR)


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Jennifer McGill UCSF Med School

"Selling my MCAT study guides and notes has been a great source of side revenue while I'm in school. Some months I'm making over $500! Plus, it makes me happy knowing that I'm helping future med students with their MCAT."

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Parker Thompson 500 Startups

"It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.