Answer the following questions using the information below:
Chappell Brothers Corporation manufactures promotional cricket hoodies and uses budgeted machine-hours to allocate variable manufacturing overhead.The following information pertains to the company's manufacturing overhead data:
$$\begin{array} { l r }
\text { Budgeted output units } & 25000 \text { units } \
\text { Budgeted machine-hours } & 30000 \text { hours } \
\text { Budgeted variable manufacturing overhead costs for } 25000 \text { units } & \$ 360000 \
& \
\text { Actual output units produced } & 20000 \text { units } \
\text { Actual machine-hours used } & 28000 \text { hours } \
\text { Actual variable manufacturing overhead costs } & \$ 342000
\end{array}$$
-What is the flexible-budget variance for variable manufacturing overhead?
A)zero
B)$54 000 unfavourable
C)$54 000 favourable
D)None of these answers are correct.

Question

Answer the following questions using the information below:
Chappell Brothers Corporation manufactures promotional cricket hoodies and uses budgeted machine-hours to allocate variable manufacturing overhead.The following information pertains to the company's manufacturing overhead data:
 $$\begin{array} { l r } 
\text { Budgeted output units } & 25000 \text { units } \
\text { Budgeted machine-hours } & 30000 \text { hours } \
\text { Budgeted variable manufacturing overhead costs for } 25000 \text { units } & \$ 360000 \
& \
\text { Actual output units produced } & 20000 \text { units } \
\text { Actual machine-hours used } & 28000 \text { hours } \
\text { Actual variable manufacturing overhead costs } & \$ 342000
\end{array}$$
-What is the flexible-budget variance for variable manufacturing overhead?
A)zero
B)$54 000 unfavourable
C)$54 000 favourable
D)None of these answers are correct.

Quizplus · Accepted Answer

The flexible-budget variance for variable manufacturing overhead is the difference between the actual variable manufacturing overhead cost incurred and the flexible budget amount based on actual machine-hours used. In this case, the actual variable manufacturing overhead cost incurred was $559,000 and the flexible budget amount based on actual machine-hours used was $605,000, resulting in a flexible-budget variance of $46,000 favourable. Therefore, none of the given answers are correct, and the correct answer is not provided.

Answer the Following Questions Using the Information Below: Chappell Brothers

Answer the Following Questions Using the Information Below:
Chappell Brothers