Sigmo Company, which uses a standard cost system, budgeted $800,000 of ﬁxed overhead when 50,000 machine hours were anticipated.Other data for the period were: Actual units produced: 10,600 Actual machine hours worked: 51,800 Actual variable overhead incurred: $475,000 Actual ﬁxed overhead incurred: $790,100 Standard variable overhead rate per machine hour: $8.50 Standard production time per unit: 5 hours Sigmo's ﬁxed-overhead budget variance is:
A)$9,900U.
B)$9,900F.
C)$28,800U.
D)$28,800F.
E)None of the answers is correct.

Question

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The Answer of Sigmo Company, which uses a standard cost system, budgeted $800,000 of ﬁxed overhead when 50,000 machine hours were anticipated.Other data for the period were: Actual units produced: 10,600 Actual machine hours worked: 51,800 Actual variable overhead incurred: $475,000 Actual ﬁxed overhead incurred: $790,100 Standard variable overhead rate per machine hour: $8.50 Standard production time per unit: 5 hours Sigmo's ﬁxed-overhead budget variance is:
A)$9,900U.
B)$9,900F.
C)$28,800U.
D)$28,800F.
E)None of the answers is correct.

Sigmo Company, Which Uses a Standard Cost System, Budgeted $800,000