The following data for the Pull Company pertain to the production of 2,000 clay pigeons during March: Standard variable overhead cost: $6.00 per pound of clay. Total actual variable overhead cost: $11,200.
Standard variable overhead cost allowed for units produced was $12,000. Variable overhead efficiency variance was $240 unfavorable.
Is the variable overhead flexible- budget variance.
A) $240 unfavorable
B) $800 unfavorable
C) $1,280 favorable
D) $800 favorable

Question

Quizplus · Accepted Answer

The variable overhead flexible-budget variance is the difference between the actual variable overhead cost and the variable overhead cost that would have been incurred if the actual level of production had been achieved at the standard variable overhead rate. In this case, the actual variable overhead cost was $11,200 and the standard variable overhead cost for the actual level of production was $12,000. Therefore, the variable overhead flexible-budget variance is $12,000 - $11,200 = $800 favorable.

The Following Data for the Pull Company Pertain to the Production