Atlanta Enterprises incurred $828,000 of fixed overhead during the period. During that same period, the company applied $845,000 of fixed overhead to production and reported an unfavorable budget variance of $41,000. How much was Atlanta's budgeted fixed overhead?
A) $787,000.
B) $804,000.
C) $869,000.
D) $886,000.
E) Not enough information to judge.

Question

Quizplus · Accepted Answer

The budgeted fixed overhead is equal to the applied fixed overhead plus the unfavorable budget variance. Therefore, Atlanta's budgeted fixed overhead is $845,000 + $41,000 = $886,000.

Atlanta Enterprises Incurred $828,000 of Fixed Overhead During the Period