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Chong Corporation recently prepared a flexible budget for water usage at its manufacturing plant. Budgeted water cost at various projected production levels is as follows:
Chong Corporation recently prepared a flexible budget for water usage at its manufacturing plant. Budgeted water cost at various projected production levels is as follows:
50,000 units | $ | 10,500 | |
75,000 units | 12,500 | ||
90,000 units | 13,700 | ||
Actual units produced amounted to 60,000. Actual cost incurred for water usage was $11,000. What was Chongs cost variance for water?
Multiple Choice
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$1,600 favorable.
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$1,800 unfavorable.
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$5,400 favorable.
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$14,400 favorable.
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None of the answers is correct.
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