Figure 11-3

Multiple Choice

Figure 11-3. Montgomery Company has developed the following flexible budget formulas for its four overhead items:
Montgomery normally produces 15,000 units (each unit requires 0.30 direct labor hours) ; however this year 19,000 units were produced with the following actual costs:
Refer to Figure 11-3.Using an after-the-fact flexible budget,calculate the total budget variance.

A) $12,510 U
B) $3,600 U
C) $5,000 F
D) $12,510 F
E) none of these.