Montgomery Company Has Developed the Following Flexible Budget Formulas for Its

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:


- Using an after-the-fact flexible budget, calculate the total budget variance.

A) $12,510 U
B) $3,600 U
C) $5,000 F
D) $12,510 F
E) None of these.