(Appendix 10A) An outdoor barbecue grill manufacturer uses a standard costing system in which standard machine-hours (MHs) is the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:
The following data pertain to operations for the most recent period:

-The fixed manufacturing overhead budget variance for the period is closest to:
A) $5,810 U
B) $2,503 F
C) $1,450 F
D) $3,009 U

Question

(Appendix 10A) An outdoor barbecue grill manufacturer uses a standard costing system in which standard machine-hours (MHs) is the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:
  The following data pertain to operations for the most recent period:
 
-The fixed manufacturing overhead budget variance for the period is closest to:
A) $5,810 U 
B) $2,503 F 
C) $1,450 F 
D) $3,009 U

Quizplus · Accepted Answer

Budget variance = Actual fixed overhead - Budgeted fixed overhead cost
= $48,690 - $50,140
= $1,450 U

(Appendix 10A) an Outdoor Barbecue Grill Manufacturer Uses a Standard