Final answer:
Bushnell, Inc. actually produced 18,500 units. This was determined by accounting for the standard variable overhead rate, the actual variable overhead, and the efficiency and spending variances provided.
Step-by-step explanation:
The student is asking how many units Bushnell, Inc. actually produced during the period. We start by noting that the company has a standard variable overhead rate of $4 per machine hour and each unit is expected to take three machine hours to produce. Next, we consider the actual variable overhead and the variable overhead variances. The variable-overhead efficiency variance was $18,000 unfavorable (U), while the variable-overhead spending variance was $30,000 favorable (F).
With this data, the first thing we can calculate is the standard hours allowed for the actual production. Since the efficiency variance formula is: (Actual hours - Standard hours) x Standard rate, we can solve for the standard hours allowed. Simplifying, we have $18,000 U / $4 standard rate = 4,500 unfavorable hours. If we subtract these unfavorable hours from the actual machine hours, we can find the standard hours allowed for the actual production.
Now, the total actual variable overhead is $210,000, and since we're given a favorable spending variance of $30,000, it means the actual cost should have been $240,000 ($210,000 actual + $30,000 F). At a rate of $4 per machine hour, this implies 60,000 actual machine hours ($240,000 / $4 per machine hour). If we subtract the 4,500 unfavorable hours, we find that the standard hours allowed for the actual production are 55,500 hours. Finally, given that each unit requires 3 hours, we divide the standard hours allowed by 3 to get the number of units produced, which is 18,500 units (55,500 standard hours / 3 hours per unit).