What is the variable manufacturing overhead static-budget variance given the following information?

Question

Quizplus · Accepted Answer

The variable manufacturing overhead static-budget variance is calculated as Actual variable manufacturing overhead - Budgeted variable manufacturing overhead. Since the answer choices only provide the variance amount, we need to determine whether it is favourable or unfavourable. The term "unfavourable" means that the actual amount exceeds the budgeted amount, whereas "favourable" means that the actual amount is less than the budgeted amount. Therefore, a negative variance is favourable, and a positive variance is unfavourable. Based on the information given, we can see that option C, $50,000 unfavourable, is the only answer choice that is negative and therefore favourable.

What Is the Variable Manufacturing Overhead Static-Budget Variance Given the Following