1Which of the following budgeted expenses has a favourable variance?

Select one:

a. Advertising $10,000, actual advertising $12,000.

b. Telephone $5,000, actual telephone $4,700.

c. Salary and wages $22,000, actual salary and wages $26,000.

d. Interest $1000, actual interest $1000.

The estimated overhead for the machine set-ups cost pool, is $180,000. The machines in the pool produce three products: X (requiring 300 set-ups); Y (requiring 200 set-ups) and Z (requiring 500 set-ups). The amount of machine set-up costs that should be allocated to product X is:

Select one:

a. $36,000

b. $90,000

c. $54,000

d. $180,000