Answer the Following Questions Using the Information Below:
Chappell Brothers

Answer the following questions using the information below:
Chappell Brothers Corporation manufactures promotional cricket hoodies and uses budgeted machine-hours to allocate variable manufacturing overhead.The following information pertains to the company's manufacturing overhead data:
$$\begin{array} { l r } \text { Budgeted output units } & 25000 \text { units } \\\text { Budgeted machine-hours } & 30000 \text { hours } \\\text { Budgeted variable manufacturing overhead costs for } 25000 \text { units } & \$ 360000 \\& \\\text { Actual output units produced } & 20000 \text { units } \\\text { Actual machine-hours used } & 28000 \text { hours } \\\text { Actual variable manufacturing overhead costs } & \$ 342000\end{array}$$
-What is the flexible-budget variance for variable manufacturing overhead?

A) zero
B) $54 000 unfavourable
C) $54 000 favourable
D) None of these answers are correct.

Correct Answer:

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