Sydney, Inc. uses flexible budgets. At normal capacity of 16,000 units, budgeted manufacturing overhead is $128,000 variable and $360,000 fixed. If Sydney had actual overhead costs of $500,000 for 18,000 units produced, what is the difference between actual and budgeted costs?
a) $4,000 favorable
b) $12,000 unfavorable
c) $4,000 unfavorable
d) $16,000 favorable
a) $4,000 favorable
Business
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