Answer the Following Questions Using the Information Below:
Fearless Frank's

question 88

Multiple Choice

Answer the following questions using the information below:
Fearless Frank's Fertiliser Farm produces fertiliser and distributes the product by using his tanker trucks.Frank's uses budgeted fleet hours to allocate variable manufacturing overhead.The following information pertains to the company's manufacturing overhead data:
$\begin{array}{lr}\text { Budgeted output urits } & 450 \text { truckloads } \\\text { Budgeted fleet hours } & 350 \text { hours } \\\text { Budgeted kilos of fertiliser } & 12000000 \text { kilos } \\\text { Budgeted variable manufacturing overhead costs for } 450 \text { loads } & \$ 50000\\\\\text { Actual output units produced and delivered } & 470 \text { truckloads } \\\text { Actual fleet hours } & 327 \text { hours } \\\text { Actual kilos of fertiliser produced and delivered } & 12600000 \text { kilos } \\\text { Actual variable manufacturing overhead costs } & \$ 52250\end{array}$
-What is the flexible-budget variance for variable manufacturing overhead?

• A)$27.78 favourable
• B)$27.78 unfavourable
• C)zero
• D)None of these answers are correct.

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