Womgh Company uses flexible budgets. At normal capacity of 8,000 units, budgeted

Question

Womgh Company uses flexible budgets. At normal capacity of 8,000 units, budgeted manufacturing overhead is: $48,000 variable and $135,000 fixed. IF Womgh had actual overhead cost of $187,500 for 9,000 units produced, what is the difference between actual and budgeted costs? Question 38 options: $1500 unfavorable $6000 favorable $1500 favorable $4500 unfavorable Womgh Company uses flexible budgets. At normal capacity of 8,000 units, budgeted manufacturing overhead is: $48,000 variable and $135,000 fixed. IF Womgh had actual overhead cost of $187,500 for 9,000 units produced, what is the difference between actual and budgeted costs? Question 38 options: $1500 unfavorable $6000 favorable $1500 favorable $4500 unfavorable Womgh Company uses flexible budgets. At normal capacity of 8,000 units, budgeted manufacturing overhead is: $48,000 variable and $135,000 fixed. IF Womgh had actual overhead cost of $187,500 for 9,000 units produced, what is the difference between actual and budgeted costs? Womgh Company uses flexible budgets. At normal capacity of 8,000 units, budgeted manufacturing overhead is: $48,000 variable and $135,000 fixed. IF Womgh had actual overhead cost of $187,500 for 9,000 units produced, what is the difference between actual and budgeted costs? $1500 unfavorable $6000 favorable $1500 favorable $4500 unfavorable $1500 unfavorable $6000 favorable $1500 favorable $4500 unfavorable $1500 unfavorable $6000 favorable $1500 favorable $4500 unfavorable

Explanation / Answer

Hi,

Please find the answer as follows:

Difference = 187500 - (48000 + 135000) = 4500 Unfavorable

Thanks.

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