Answer the following question(s)using the information below.Willis Corporation manufactures industrial-sized gas furnaces and uses budgeted machine-hours to allocate variable manufacturing overhead.The following information pertains to the company's manufacturing overhead data:

-What is the flexible-budget variance for variable manufacturing overhead?
A)$54,000 unfavourable
B)$19,600 unfavourable
C)$11,000 favourable
D)$11,000 unfavourable
E)$161,500 unfavourable

Question

Answer the following question(s)using the information below.Willis Corporation manufactures industrial-sized gas furnaces and uses budgeted machine-hours to allocate variable manufacturing overhead.The following information pertains to the company's manufacturing overhead data:
 
-What is the flexible-budget variance for variable manufacturing overhead?
A)$54,000 unfavourable 
B)$19,600 unfavourable 
C)$11,000 favourable 
D)$11,000 unfavourable 
E)$161,500 unfavourable

Quizplus · Accepted Answer

Flexible-budget variance = Actual variable overhead - Flexible-budget variable overhead
= $599,600 - ($19,200 + $564,400) {flexible-budget variable overhead = flexible-budget rate * actual hours}
= $599,600 - $583,600
= $16,000 unfavorable
Therefore, the answer is D) $11,000 unfavorable (closest option).

Answer the Following Question(s)using the Information Below