(Appendix 11A)Vette Tie Corporation has developed the following manufacturing overhead standards to use in applying overhead to the production of its hand-painted silk ties.Manufacturing overhead at Vette is applied to production on the basis of standard direct labor-hours (DLHs). The above standards were based on an expected annual volume of 60, 000 ties.The actual results for last year were as follows: What was Vette's fixed manufacturing overhead budget variance?
A)$1, 600 Unfavorable
B)$3, 000 Favorable
C)$13, 000 Unfavorable
D)$17, 600 Unfavorable

Question

(Appendix 11A)Vette Tie Corporation has developed the following manufacturing overhead standards to use in applying overhead to the production of its hand-painted silk ties.Manufacturing overhead at Vette is applied to production on the basis of standard direct labor-hours (DLHs).  The above standards were based on an expected annual volume of 60, 000 ties.The actual results for last year were as follows:  What was Vette's fixed manufacturing overhead budget variance?
A)$1, 600 Unfavorable 
B)$3, 000 Favorable 
C)$13, 000 Unfavorable 
D)$17, 600 Unfavorable

Quizplus · Accepted Answer

Budget variance = Actual fixed overhead - Budgeted fixed overhead
= $525, 000 - $528, 000
= $3, 000 F

(Appendix 11A)Vette Tie Corporation Has Developed the Following Manufacturing Overhead