If stone had actual overhead costs of 321000 for 18000


Question - Stone Industries uses flexible budgets. At normal capacity of 16,000 units, budgeted manufacturing overhead is: $48,000 variable and $270,000 fixed. If Stone had actual overhead costs of $321,000 for 18,000 units produced, what is the difference between actual and budgeted costs?

a) $3,000 unfavorable.

b) $3,000 favorable.

c) $9,000 unfavorable.

d) $12,000 favorable.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: If stone had actual overhead costs of 321000 for 18000
Reference No:- TGS02386460

Now Priced at $25 (50% Discount)

Recommended (98%)

Rated (4.3/5)