(Appendix 11A)Bruley Corporation applies manufacturing overhead to products on the basis of standard machine-hours.The company's predetermined overhead rate for fixed manufacturing overhead is $3.30 per machine-hour and the denominator level of activity is 3, 500 machine-hours.In the most recent month, the total actual fixed manufacturing overhead was $11, 570 and the company actually worked 3, 430 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 3, 450 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month?
A)$66 Favorable
B)$231 Favorable
C)$231 Unfavorable
D)$165 Unfavorable

Question

Quizplus · Accepted Answer

Volume variance = Budgeted fixed overhead cost - Fixed overhead applied to work in process
= (3, 500 machine-hours × $3.30 per machine-hour)- (3, 450 machine-hours × $3.30 per machine-hour)
= $11, 550 - $11, 385
= $165 U

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