Vaughn Manufacturing uses flexible budgets. At normal capacity of 22000 units, budgeted manufacturing overhead is: $45100 for variable costs and $270000 for fixed costs. If Vaughn Manufacturing had actual overhead costs of $318800 for 25000 units produced, what is the difference between actual and budgeted costs? (do not round intermediate calculation.) O $2450 favorable O$7350 unfavorable O$9800 favorable O$2450 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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Vaughn Manufacturing uses flexible budgets. At normal capacity of 22000 units, budgeted manufacturing overhead is: $45100 for
variable costs and $270000 for fixed costs. If Vaughn Manufacturing had actual overhead costs of $318800 for 25000 units produced,
what is the difference between actual and budgeted costs? (do not round intermediate calculation.)
O $2450 favorable
O$7350 unfavorable
O$9800 favorable
O $2450 unfavorable
Transcribed Image Text:Vaughn Manufacturing uses flexible budgets. At normal capacity of 22000 units, budgeted manufacturing overhead is: $45100 for variable costs and $270000 for fixed costs. If Vaughn Manufacturing had actual overhead costs of $318800 for 25000 units produced, what is the difference between actual and budgeted costs? (do not round intermediate calculation.) O $2450 favorable O$7350 unfavorable O$9800 favorable O $2450 unfavorable
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