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Answer the Following Questions Using the Information Below:
Alice Springs

Question 71

Multiple Choice

Answer the following questions using the information below:
Alice Springs Corporation manufactures industrial-sized water coolers and uses budgeted machine-hours to allocate variable manufacturing overhead.The following information pertains to the company's manufacturing overhead data:
 Budgeted output units 20000 units  Budgeted machine-hours 6000 hours  Budgeted variable manufacturing overhead costs for 20000 units $161250 Actual output units produced 24000 units  Actual machine-hours used 7200 hours  Actual variable manufacturing overhead costs $242000\begin{array} { l r } \text { Budgeted output units } & 20000 \text { units } \\\text { Budgeted machine-hours } & 6000 \text { hours } \\\text { Budgeted variable manufacturing overhead costs for } 20000 \text { units } & \$ 161250 \\& \\\text { Actual output units produced } & 24000 \text { units } \\\text { Actual machine-hours used } & 7200 \text { hours } \\\text { Actual variable manufacturing overhead costs } & \$ 242000\end{array}
-What is the flexible-budget variance for variable manufacturing overhead?


A) $5500 favourable
B) $5500 unfavourable
C) $4300 favourable
D) None of these answers are correct.

Correct Answer:

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