Answer the following questions using the information below:
Patel Corporation manufactured 1,000 coolers during October. The following variable overhead data pertain to October:

-What is the variable overhead flexible-budget variance?
A)$600 favorable
B)$420 unfavorable
C)$780 favorable
D)$600 unfavorable

Question

Answer the following questions using the information below:
Patel Corporation manufactured 1,000 coolers during October. The following variable overhead data pertain to October:
 
-What is the variable overhead flexible-budget variance?
A)$600 favorable 
B)$420 unfavorable 
C)$780 favorable 
D)$600 unfavorable

Quizplus · Accepted Answer

The variable overhead flexible-budget variance is the difference between the actual variable overhead costs and the flexible-budget variable overhead costs. In this case, the actual variable overhead costs are $1,200 and the flexible-budget variable overhead costs are $600. Therefore, the variable overhead flexible-budget variance is $1,200 - $600 = $600 favorable.

Answer the Following Questions Using the Information Below