(Appendix 11A)Reidenbach Corporation applies manufacturing overhead to products on the basis of standard machine-hours.The budgeted fixed manufacturing overhead cost for the most recent month was $17, 100 and the actual fixed manufacturing overhead cost for the month was $17, 450.The company based its original budget on 4, 500 machine-hours.The standard hours allowed for the actual output of the month totaled 4, 810 machine-hours.What was the overall fixed manufacturing overhead budget variance for the month?
A)$1, 178 Unfavorable
B)$350 Unfavorable
C)$350 Favorable
D)$1, 178 Favorable

Question

Quizplus · Accepted Answer

Budget variance = Actual fixed overhead - Budgeted fixed overhead cost
= $17, 450 - $17, 100 = $350 U

(Appendix 11A)Reidenbach Corporation Applies Manufacturing Overhead to Products on the Basis