Use the Following Information to Answer the Questions Below:
Mynarc

question 80

Multiple Choice

Use the following information to answer the questions below:
Mynarc Corporation produces fertilizer and distributes the product by using his tanker trucks. Mynarc
uses budgeted fleet hours to allocate variable manufacturing overhead. The following information pertains to the company's manufacturing overhead data:
$\begin{array}{lr}\text { Budgeted output units } & 675 \text { truckloads } \\\text { Budgeted fleet hours } & 540 \text { hours } \\\text { Budgeted variable manufacturing overhead costs for } 675 \text { loads } & \$ 82,350 \\\\\text { Actual output units produced and delivered } & 630 \text { truckloads } \\\text { Actual fleet hours } & 436 \text { hours } \\\text { Actual variable manufacturing overhead costs } & \$ 77,490\end{array}$
-What is the flexible-budget variance for variable manufacturing overhead?

• A) $4,860 favorable
• B) $4,860 unfavorable
• C) $630 favorable
• D) $630 unfavorable

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