Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Grachev Co. manufactures hedge clippers, its only product. The following information relates to the
company's manufacturing overhead
for an output of 20,000 clippers:

-What is the variable manufacturing overhead static budget variance (i.e. a flexible budget is not used) ?

A) $ 8,750 unfavorable
B) $ 8,750 favorable
C) $76,250 favorable
D) $76,250 unfavorable