Answer the following questions using the information below:
Brown Corporation manufactured 3,000 chairs during June. The following variable overhead data pertain to June:

-What is the variable overhead flexible-budget variance?
A)$2,400 favorable
B)$720 unfavorable
C)$3,120 favorable
D)$2,400 unfavorable

Question

Answer the following questions using the information below:
Brown Corporation manufactured 3,000 chairs during June. The following variable overhead data pertain to June:
 
-What is the variable overhead flexible-budget variance?
A)$2,400 favorable 
B)$720 unfavorable 
C)$3,120 favorable 
D)$2,400 unfavorable

Quizplus · Accepted Answer

The variable overhead flexible-budget variance is the difference between the actual variable overhead costs and the flexible-budget variable overhead costs. In this case, the actual variable overhead costs are $12,480 and the flexible-budget variable overhead costs are $10,080. Therefore, the variable overhead flexible-budget variance is $12,480 - $10,080 = $2,400 favorable.

Answer the Following Questions Using the Information Below