Use the Following Information to Answer the Following Questions:
Autogas

question 144

Multiple Choice

Use the following information to answer the following questions:
Autogas Corporation manufactures industrial-sized gas furnaces and uses budgeted machine hours to allocate variable manufacturing overhead. The following information relates to the company's manufacturing overhead data:
$\begin{array}{lr}\text { Budgeted output units } & 31,000 \text { urits } \\\text { Budgeted machine-hours } & 16,585 \text { hours } \\\text { Budgeted variable manufacturing overhead costs for } 31,000 \text { units } & \$ 348,285 \\\text { Actual output units produced } & 33,000 \text { urits } \\\text { Actual machine-hours used } & 14,400 \text { hours } \\\text { Actual variable manufacturing overhead costs } & \$ 384,000\end{array}$
-What is the flexible-budget variance for variable manufacturing overhead?

• A) $13,245 unfavorable
• B) $35,715 unfavorable
• C) $13,245 favorable
• D) $35,715 favorable

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Definitions:

Identifiable Segments

Refer to portions or sections of a business that can be separately distinguished for analysis or accounting purposes, often based on their operating activities, geography, or products.

Reportable

A term used to describe information or data that must be disclosed or presented in a specified manner according to regulatory, legal, or professional requirements.

Interim Financial Statements

Financial reports covering a period less than a full fiscal year, typically quarterly, providing a continuous view of a company’s financial position.

IFRS 8

An International Financial Reporting Standard that requires particular types of companies to disclose information regarding their operating segments, products and services, and geographical areas of operation.