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Montgomery Company Has Developed the Following Flexible Budget Formulas for Its

Question 116

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Montgomery Company has developed the following flexible budget formulas for its four overhead items:
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: - 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.
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:

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: - 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.
- 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.

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