(Appendix 11A)Tropiano Electronics Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs).The company had budgeted its fixed manufacturing overhead cost at $62, 100 for the month and its level of activity at 3, 200 MHs.The actual total fixed manufacturing overhead was $61, 600 for the month and the actual level of activity was 3, 000 MHs.What was the fixed manufacturing overhead budget variance for the month to the nearest dollar?
A)$3, 381 Unfavorable
B)$500 Favorable
C)$500 Unfavorable
D)$3, 381 Favorable

Question

Quizplus · Accepted Answer

Budget variance = Actual fixed overhead - Budgeted fixed overhead cost
= $61, 600 - $62, 100
= $500 F

(Appendix 11A)Tropiano Electronics Corporation Has a Standard Cost System in Which