Question

Oriole Manufacturing produces gourmet blackberry preserves. Oriole based its current year budget on a production level...

Oriole Manufacturing produces gourmet blackberry preserves. Oriole based its current year budget on a production level of 540500 jars of preserves using ½ hour direct labor time for each jar (which includes hand-sorting and trimming the berries). Total budgeted variable overhead for the year was $1243000. During the year, Oriole used 280500 direct labor hours to produce 550000 jars of blackberry preserves. Actual variable overhead for the year was $1247500. What is Oriole’s flexible budget variable overhead variance?

$26500 unfavorable

$17500 favorable

$4500 unfavorable

$25300 unfavorable

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