Compute what difference between actual and budgeted costs

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Problem 1: Vaughn Manufacturing uses flexible budgets. At normal capacity of 25000 units, budgeted manufacturing overhead is $200000variable and $360000 fixed. If Vaughn had actual overhead costs of $590000 for 30000 units produced, what is the difference between actual and budgeted costs?

Option 1: $30000 favorable
Option 2: $10000 unfavorable
Option 3: $40000 favorable
Option 4: $10000 favorable

Reference no: EM132972656

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