Answer the following questions using the information below:
Patel Corporation manufactured 1000 coolers during October.The following variable overhead data pertain to October:
$\begin{array}{ll}
\text { Budgeted variable overhead cost per unit } & \$ 9.00 \
\text { Actual variable manufacturing overhead cost } & \$ 8400 \
\text { Flexible-bud get amount for variable manufacturing overhead } & \$ 9000 \
\text { Variable manufacturing overhead efficiency variance } & \$ 180 \text { unfavourable }
\end{array}$

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

Question

Answer the following questions using the information below:
Patel Corporation manufactured 1000 coolers during October.The following variable overhead data pertain to October:
 $\begin{array}{ll}
\text { Budgeted variable overhead cost per unit } & \$ 9.00 \
\text { Actual variable manufacturing overhead cost } & \$ 8400 \
\text { Flexible-bud get amount for variable manufacturing overhead } & \$ 9000 \
\text { Variable manufacturing overhead efficiency variance } & \$ 180 \text { unfavourable }
\end{array}$

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

Quizplus · Accepted Answer

The variable overhead flexible-budget variance is calculated as the difference between the actual variable manufacturing overhead cost and the flexible-budget amount. Here, it is $8400 (actual) - $9000 (flexible-budget) = $600 favourable.

Answer the Following Questions Using the Information Below: Patel Corporation

Answer the Following Questions Using the Information Below:
Patel Corporation