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GREYUIT [131]
3 years ago
8

Chambers, Inc. uses flexible budgets. At normal capacity of 16,000 units, budgeted manufacturing overhead is: $64,000 variable a

nd $180,000 fixed. If Chambers had actual overhead costs of $250,000 for 18,000 units produced, what is the difference between actual and budgeted costs?
Chambers, Inc. uses flexible budgets. At normal ca

$2,000 unfavorable.

$2,000 favorable.

$8,000 favorable.

$6,000 unfavorable.
Business
1 answer:
Elza [17]3 years ago
4 0

Answer:

The correct answer is B.

Explanation:

Giving the following information:

At the normal capacity of 16,000 units, budgeted manufacturing overhead is $64,000 variable and $180,000 fixed. If Chambers had actual overhead costs of $250,000 for 18,000 units produced.

Variable overhead rate= 64,000/16,000= $4

Overhead variance= real - allocated

Overhead variance= 250,000 - (4*18,000 + 180,000)= 250,000 - 252,000= 2,000 favorable

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