Stone Industries uses flexible budgets. At normal capacity of 16,000 units, budgeted manufacturing overhead is: $48,000 variable and $270,000 fixed. If Stone had actual overhead costs of $321,000 for 18,000 units produced, what is the difference between actual and budgeted costs?
a) $3,000 favorable
b) $3,000 unfavorable
c) $9,000 unfavorable
d) $12,000 favorable
Ans: a) $3,000 favorable
Business
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