An outdoor barbecue grill manufacturer has a standard costing system based on standard direct labor-hours (DLHs) as 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:
-What was the fixed manufacturing overhead budget variance for the period to the nearest dollar?
A)$2,750 U
B)$2,570 U
C)$1,850 F
D)$161 F

Question

An outdoor barbecue grill manufacturer has a standard costing system based on standard direct labor-hours (DLHs) as 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: 
-What was the fixed manufacturing overhead budget variance for the period to the nearest dollar?
A)$2,750 U 
B)$2,570 U 
C)$1,850 F 
D)$161 F

Quizplus · Accepted Answer

Budget variance = Actual fixed overhead - Budgeted fixed overhead cost
= $23,350 - $25,200 = $1,850 F

An Outdoor Barbecue Grill Manufacturer Has a Standard Costing System