Acuff Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below: The company based its original budget on 6,200 machine-hours. The company actually worked 6,560 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 6,420 machine-hours. What was the overall fixed manufacturing overhead budget variance for the month?
A)$320 Favorable
B)$320 Unfavorable
C)$972 Favorable
D)$972 Unfavorable

Question

Acuff Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below:  The company based its original budget on 6,200 machine-hours. The company actually worked 6,560 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 6,420 machine-hours. What was the overall fixed manufacturing overhead budget variance for the month?
A)$320 Favorable 
B)$320 Unfavorable 
C)$972 Favorable 
D)$972 Unfavorable

Quizplus · Accepted Answer

The Answer of Acuff Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below:  The company based its original budget on 6,200 machine-hours. The company actually worked 6,560 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 6,420 machine-hours. What was the overall fixed manufacturing overhead budget variance for the month?
A)$320 Favorable 
B)$320 Unfavorable 
C)$972 Favorable 
D)$972 Unfavorable

Acuff Corporation Applies Manufacturing Overhead to Products on the Basis