Use the following information to answer the following questions:
Autogas Corporation manufactures industrial-sized gas furnaces and uses budgeted machine hours to allocate variable manufacturing overhead. The following information relates to the company's manufacturing overhead data:
$\begin{array}{lr}
\text { Budgeted output units } & 31,000 \text { urits } \
\text { Budgeted machine-hours } & 16,585 \text { hours } \
\text { Budgeted variable manufacturing overhead costs for } 31,000 \text { units } & \$ 348,285 \
\text { Actual output units produced } & 33,000 \text { urits } \
\text { Actual machine-hours used } & 14,400 \text { hours } \
\text { Actual variable manufacturing overhead costs } & \$ 384,000
\end{array}$
-What is the flexible-budget variance for variable manufacturing overhead?
A) $13,245 unfavorable
B) $35,715 unfavorable
C) $13,245 favorable
D) $35,715 favorable

Question

Use the following information to answer the following questions:
Autogas Corporation manufactures industrial-sized gas furnaces and uses budgeted machine hours to allocate variable manufacturing overhead. The following information relates to the company's manufacturing overhead data:
 $\begin{array}{lr}
\text { Budgeted output units } & 31,000 \text { urits } \
\text { Budgeted machine-hours } & 16,585 \text { hours } \
\text { Budgeted variable manufacturing overhead costs for } 31,000 \text { units } & \$ 348,285 \
\text { Actual output units produced } & 33,000 \text { urits } \
\text { Actual machine-hours used } & 14,400 \text { hours } \
\text { Actual variable manufacturing overhead costs } & \$ 384,000
\end{array}$
-What is the flexible-budget variance for variable manufacturing overhead?
A) $13,245 unfavorable
B) $35,715 unfavorable
C) $13,245 favorable
D) $35,715 favorable

Quizplus · Accepted Answer

The flexible-budget variance for variable manufacturing overhead is the difference between the budgeted variable manufacturing overhead costs for the actual output units produced and the actual variable manufacturing overhead costs. In this case, the budgeted variable manufacturing overhead costs for the actual output units produced are $348,285 (31,000 units x $11.23 per unit), and the actual variable manufacturing overhead costs are $384,000. Therefore, the flexible-budget variance for variable manufacturing overhead is $384,000 - $348,285 = $35,715 unfavorable.

Use the Following Information to Answer the Following Questions: Autogas

Use the Following Information to Answer the Following Questions:
Autogas