Marigold Corp. uses flexible budgets. At a normal capacity of 22,000 units, the budgeted manufacturing overhead is $66,000 variable and $270,000 fixed. If Stone had actual overhead costs of $337,200 for 24,000 units produced, what is the difference between actual and budgeted costs? a. $3,600 unfavorable b. $4,800 favorable c. $1,200 unfavorable d. $1,200 favorable
Marigold Corp. uses flexible budgets. At a normal capacity of 22,000 units, the budgeted manufacturing overhead is $66,000 variable and $270,000 fixed. If Stone had actual overhead costs of $337,200 for 24,000 units produced, what is the difference between actual and budgeted costs? a. $3,600 unfavorable b. $4,800 favorable c. $1,200 unfavorable d. $1,200 favorable
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 14CE: Refer to Cornerstone Exercise 8.13. In March, Nashler Company produced 163,200 units and had the...
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Marigold Corp. uses flexible budgets. At a normal capacity of 22,000 units, the budgeted manufacturing overhead is $66,000 variable and $270,000 fixed. If Stone had actual overhead costs of $337,200 for 24,000 units produced, what is the difference between actual and budgeted costs?
a. $3,600 unfavorable
b. $4,800 favorable
c. $1,200 unfavorable
d. $1,200 favorable
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