Answer the following questions using the information below:
Harvey Corporation manufactured 1500 chairs during June.The following variable overhead data pertain to June:
$\begin{array}{ll}
\text { Budgeted variable overhead cost per unit } & \$ 12.00 \
\text { Actual variable manufacturing overhead cost } & \$ 20800 \
\text { Flexible-bud get amount for variable manufacturing overhead } & \$ 18000 \
\text { Variable manufacturing overhead efficiency variance } & \$ 360 \text { unfavourable }
\end{array}$

-What is the variable overhead flexible-budget variance?
A)$2800 unfavourable
B)$2800 favourable
C)$1560 favourable
D)$360 unfavourable

Question

Answer the following questions using the information below:
Harvey Corporation manufactured 1500 chairs during June.The following variable overhead data pertain to June:
 $\begin{array}{ll}
\text { Budgeted variable overhead cost per unit } & \$ 12.00 \
\text { Actual variable manufacturing overhead cost } & \$ 20800 \
\text { Flexible-bud get amount for variable manufacturing overhead } & \$ 18000 \
\text { Variable manufacturing overhead efficiency variance } & \$ 360 \text { unfavourable }
\end{array}$

-What is the variable overhead flexible-budget variance?
A)$2800 unfavourable
B)$2800 favourable
C)$1560 favourable
D)$360 unfavourable

Quizplus · Accepted Answer

The variable overhead flexible-budget variance is calculated by comparing the actual variable overhead costs incurred to the variable overhead costs allowed for the actual output achieved. If the actual costs exceed the allowed costs, the variance is unfavorable. A variance of $2800 unfavourable indicates that the actual variable overhead costs were $2800 higher than what was budgeted for the actual level of output.

Answer the Following Questions Using the Information Below: Harvey Corporation

Answer the Following Questions Using the Information Below:
Harvey Corporation