Chong Corporation recently prepared a ﬂexible budget for water usage at its manufacturing plant.Budgeted water cost at various projected production levels is as follows: Actual units produced amounted to 60,000.Actual cost incurred for water usage was $4,500.What was Chong's cost variance for water?
A)$300 favorable.
B)$500 unfavorable.
C)$1,500 favorable.
D)$2,700 favorable.
E)None of the answers is correct.

Question

Chong Corporation recently prepared a ﬂexible budget for water usage at its manufacturing plant.Budgeted water cost at various projected production levels is as follows:  Actual units produced amounted to 60,000.Actual cost incurred for water usage was $4,500.What was Chong's cost variance for water?
A)$300 favorable. 
B)$500 unfavorable. 
C)$1,500 favorable. 
D)$2,700 favorable. 
E)None of the answers is correct.

Quizplus · Accepted Answer

The Answer of Chong Corporation recently prepared a ﬂexible budget for water usage at its manufacturing plant.Budgeted water cost at various projected production levels is as follows:  Actual units produced amounted to 60,000.Actual cost incurred for water usage was $4,500.What was Chong's cost variance for water?
A)$300 favorable. 
B)$500 unfavorable. 
C)$1,500 favorable. 
D)$2,700 favorable. 
E)None of the answers is correct.

Chong Corporation Recently Prepared a ﬂExible Budget for Water Usage