Wednesday, June 8, 2011

What is the variable overhead flexible-budget variance?

ACCOUNTING

Multiple Choice

Kellar Corporation manufactured 1,500 chairs during June. The following variable overhead data pertain to June.



Budgeted variable overhead cost per unit $ 12.00

Actual variable manufacturing overhead cost $16,800

Flexible-budget amount for variable manufacturing overhead $18,000

Variable manufacturing overhead efficiency variance $360 unfavorable

What is the variable overhead flexible-budget variance?

a. $1,200 favorable

b. $360 unfavorable

c. $1,560 favorable

d. $1,200 unfavorable

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