Teall Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs).The company has provided the following data for the most recent month: What was the fixed manufacturing overhead budget variance for the month?
A)$4,000 Unfavorable
B)$4,000 Favorable
C)$570 Favorable
D)$570 Unfavorable

Question

Teall Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs).The company has provided the following data for the most recent month:  What was the fixed manufacturing overhead budget variance for the month?
A)$4,000 Unfavorable 
B)$4,000 Favorable 
C)$570 Favorable 
D)$570 Unfavorable

Quizplus · Accepted Answer

Budget variance = Actual fixed overhead - Budgeted fixed overhead cost
= $54,000 - $50,000
= $4,000 U

Teall Corporation Has a Standard Cost System in Which It