Wild West Company Planned to Produce 12,000 Units

Multiple Choice

Wild West Company planned to produce 12,000 units. Processing required 16,000 machine hours at a cost of $15,000 + $10.50 per machine hour. Actual sales were 14,000 units requiring 20,000 machine hours. Actual processing cost was $222,000. is the master budget variance for processing.

A) $39,000 unfavorable
B) $39,000 favorable
C) $42,000 favorable
D) $42,000 unfavorable