Bridgestone Company has developed the following flexible budget formulas for its four overhead items:
Bridgestone normally produces 10,000 units (each unit requires 0.10 direct labour hours); however, this year 15,000 units were produced with the following actual costs:
$Bridgestone Company has developed the following flexible budget formulas for its four overhead items: Bridgestone normally produces 10,000 units (each unit requires 0.10 direct labour hours); however, this year 15,000 units were produced with the following actual costs: \begin{array}{ll}\text { Overhead item }&\text { Actual costs }\\ \text { Maintenance } & \$ 14,000 \\ \text { Power } & \$ 3,600 \\ \text { Direct labour } & \$ 16,000 \\ \text { Equipment lease } & \$ 5,000 \end{array} -Refer to the Figure.When using an after-the-fact flexible budget,what is the variance for power? A)$1,000 U B)$1,000 F C)$1,600 U D)$3,000 U$

\begin{array}{ll}\text { Overhead item }&\text { Actual costs }\\\text { Maintenance } & \$ 14,000 \\\text { Power } & \$ 3,600 \\\text { Direct labour } & \$ 16,000 \\\text { Equipment lease } & \$ 5,000\end{array}

-Refer to the Figure.When using an after-the-fact flexible budget,what is the variance for power?
A)$1,000 U
B)$1,000 F
C)$1,600 U
D)$3,000 U

Kelsey, Inc

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