Watson Industries uses flexible budgets. At normal capacity of 18,000 units, budgeted manufacturing overhead is $128,000 variable and $360,000 fixed. If Watson had actual overhead costs of $500,000 for 18,000 units produced, what is the difference between actual and budgeted costs?
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$16,000 favorable |
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$12,000 unfavorable |
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$4,000 unfavorable |
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$4,000 favorable |