(Appendix 11A)A furniture manufacturer uses a standard costing system in which standard machine-hours (MHs)is 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: The fixed manufacturing overhead budget variance for the period is closest to:
A)$2, 675 U
B)$1, 450 F
C)$3, 691 F
D)$1, 270 F

Question

(Appendix 11A)A furniture manufacturer uses a standard costing system in which standard machine-hours (MHs)is 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:  The fixed manufacturing overhead budget variance for the period is closest to:
A)$2, 675 U 
B)$1, 450 F 
C)$3, 691 F 
D)$1, 270 F

Quizplus · Accepted Answer

Budget variance = Actual fixed overhead - Budgeted fixed overhead cost
= $38, 975 - $40, 425
= $1, 450 F

(Appendix 11A)A Furniture Manufacturer Uses a Standard Costing System in Which