Variable manufacturing overhead costs were __________ for actual output

ACCOUNTING

Multiple Choice

In flexible budgets, costs that remain the same regardless of the output levels within the relevant Shimon Corporation manufactures industrial-sized water coolers and uses budgeted machine-hours to allocate variable manufacturing overhead. The following information pertains to the company's manufacturing overhead data.


Budgeted output units 15,000 units

Budgeted machine-hours 5,000 hours

Budgeted variable manufacturing overhead costs for 15,000 units $161,250


Actual output units produced 22,000 units

Actual machine-hours used 7,200 hours

Actual variable manufacturing overhead costs $242,000


Variable manufacturing overhead costs were __________ for actual output

a. higher than expected

b. the same as expected

c. lower than expected

d. unable to be determined

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