Answer:
The correct answer is B.
Explanation:
Giving the following information:
Windell Company uses flexible budgets. At a normal capacity of 8,000 units, budgeted manufacturing overhead is $64,000 variable and $180,000 fixed. If Windell had actual overhead costs of $250,000 for 9,000 units produced.
First, we need to calculate the estimated manufactured overhead rate and the allocation moh:
Variable Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 64,000/8,000= 8
Allocated moh= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated moh= 8*9,000= 72,000
Over/under allocation= real MOH - allocated MOH
Over/under allocation= 250,000 - (72,000 + 180,000)= 2,000 favorable
