Sydney Inc. uses flexible budgets. At normal capacity of 16000 units budgeted manufacturing overhead is $128000 variable and $360000 fixed. If Sydney had actual overhead costs of $500000 for 18000 units produced what is the difference between actual and budgeted costs?
A) $4000 unfavorable
B) $4000 favorable
C) $12000 unfavorable
D) $16000 favorable
Correct Answer:
Verified
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