Question

Bramble Corp. uses flexible budgets. At normal capacity of 19000 units, budgeted manufacturing overhead is: $57000 variable and $270000 fixed. If Stone had actual overhead costs of $328800 for 21000 units produced, what is the difference between actual and budgeted costs

Answer 1

$4,200 Favorable

Step-by-step explanation:

Given the above information,

Variable overhead rate

= $57,000 / 19,000 units

= $3 per unit

Overhead variance = Real - Allocated

= $328,800 - ($3 × 21,000 + $270,000)

= $328,800 - $333,000

= $4,200 Favorable