Figure 11-3. Montgomery Company has developed the following flexible budget formulas for its four overhead items:
Montgomery normally produces 15,000 units (each unit requires 0.30 direct labor hours); however this year 19,000 units were produced with the following actual costs:
Refer to Figure 11-3.Calculate the variance for maintenance using an after-the-fact flexible budget.
A)$13,000 U
B)$13,100 F
C)$11,000 U
D)$1,000 F
E)none of these

Question

Figure 11-3. Montgomery Company has developed the following flexible budget formulas for its four overhead items:
 Montgomery normally produces 15,000 units (each unit requires 0.30 direct labor hours); however this year 19,000 units were produced with the following actual costs:
 Refer to Figure 11-3.Calculate the variance for maintenance using an after-the-fact flexible budget.
A)$13,000 U 
B)$13,100 F 
C)$11,000 U 
D)$1,000 F 
E)none of these

Quizplus · Accepted Answer

The Answer of Figure 11-3. Montgomery Company has developed the following flexible budget formulas for its four overhead items:
 Montgomery normally produces 15,000 units (each unit requires 0.30 direct labor hours); however this year 19,000 units were produced with the following actual costs:
 Refer to Figure 11-3.Calculate the variance for maintenance using an after-the-fact flexible budget.
A)$13,000 U 
B)$13,100 F 
C)$11,000 U 
D)$1,000 F 
E)none of these