Swifty Corporation uses flexible budgets. At normal capacity of 25000 units, budgeted manufacturing overhead is: $80000 for variable costs and $180000 for fixed costs. If Swifty had actual overhead costs of $210000 for 18000 units produced, what is the difference between actual and budgeted costs? O $27600 favorable. O $110400 favorable. O $82800 unfavorable. O $27600 unfavorable.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter7: Budgeting
Section: Chapter Questions
Problem 15EA: Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per...
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Swifty Corporation uses flexible budgets. At normal capacity of 25000 units, budgeted manufacturing overhead is: $80000 for
variable costs and $180000 for fixed costs. If Swifty had actual overhead costs of $210000 for 18000 units produced, what is the
difference between actual and budgeted costs?
O $27600 favorable.
O $110400 favorable.
O $82800 unfavorable.
O $27600 unfavorable.
Transcribed Image Text:Swifty Corporation uses flexible budgets. At normal capacity of 25000 units, budgeted manufacturing overhead is: $80000 for variable costs and $180000 for fixed costs. If Swifty had actual overhead costs of $210000 for 18000 units produced, what is the difference between actual and budgeted costs? O $27600 favorable. O $110400 favorable. O $82800 unfavorable. O $27600 unfavorable.
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