Stone industries uses flexible budgets at normal capacity

Reference no: EM13609627

1.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. $3000 Unfavorable

B. $3000 Favorable

C. $9000 Unfavorable

D. $12,000 Favorable.

2. Budgeted overhead for Cinnabar Industries at normal capacity of 30,000 direct labor hours is $ 6 per hour variable and $ 4 per hour fixed. In May, $ 310,000 of overhead was incurred in working 31,500 hours when 32,000 standard hours were allowed. The overhead controllable variance is

A. $5,000 Favorable

B. $2,000 Unfavorable

C. $10,000 Favorable

D. $ 10,0000 Unfavorable.

3. Budgeted overhead for Cinnabar Industries at normal capacity of 30,000 direct labor hours is $ 6 per hour variable and $ 4 per hour fixed. In May, $ 310,000 of overhead was incurred in working 31,500 hours when 32,000 standard hours were allowed. The overhead volume variance is

A. $8,000 Favorable

B. $11,000 Favorable

C. $5,000 Favorable

D. $10,000 Favorable

Reference no: EM13609627

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