When Walston Corporation prepared its budget for 2017, it estimated fixed overhead of $540,000 ($45,000 per month)
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When Walston Corporation prepared its budget for 2017, it estimated fixed overhead of $540,000 ($45,000 per month) and variable overhead at $3.00 per unit produced. The company planned to produce 48,000 units during the year at a rate of 4,000 units each month. During April, the company produced 3,800 units and total overhead costs were $59,000. How much is the amount of overhead in the flexible budget for April’s level of production?
A. $2, 250 unfavorable
B. $2, 850 unfavorable
C. $1,000 unfavorable
D. $1, 600 unfavorable
Related Book For
Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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