Stone Industries Uses Flexible Budgets

Multiple Choice

Stone Industries uses flexible budgets. At normal capacity of 16000 units budgeted manufacturing overhead is: $48000 variable and $270000 fixed. If Stone had actual overhead costs of $321000 for 18000 units produced what is the difference between actual and budgeted costs?

A) $3000 unfavorable
B) $3000 favorable
C) $9000 unfavorable
D) $12000 favorable