Smith Industries uses flexible budgets. At normal capacity of 16,000 units, budgeted manufacturing overhead is $48,000 for variable costs and $270,000 for fixed costs. If Smith had actual overhead costs of $321,000 for 18,000 units produced, what is the difference between actual and budgeted costs?
Question 16 options:
A)
$12,000 favorable
B)
$3,000 favorable
C)
$3,000 unfavorable
D)
$9,000 unfavorable