1.The master budget of Swifty Corporation shows that the planned activity level for next year is expected to be 50000 machine hours. At this level of activity, the following manufacturing overhead costs are expected:

Indirect labor$780000Machine supplies250000Indirect materials180000Depreciation on factory building190000Total manufacturing overhead$1400000

A flexible budget for a level of activity of 60000 machine hours would show total manufacturing overhead costs of

$1642000.

$1490000.

$1400000.

$1680000.

2.Marigold Corp. uses flexible budgets. At normal capacity of 22000 units, budgeted manufacturing overhead is: $66000 variable and $270000 fixed. If Stone had actual overhead costs of $337200 for 24000 units produced, what is the difference between actual and budgeted costs?

$3600 unfavorable

$4800 favorable

$1200 unfavorable

$1200 favorable