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Lamont Company Uses Flexible Budgets

Question 158

Multiple Choice

Lamont Company uses flexible budgets. At normal capacity of 8,000 units, budgeted manufacturing overhead is $64,000 variable and $180,000 fixed. If Lamont had actual overhead costs of $250,000 for 9,000 units produced, what is the difference between actual and budgeted costs?


A) $2,000 unfavorable
B) $2,000 favorable
C) $6,000 unfavorable
D) $8,000 favorable

Correct Answer:

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