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

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

The Answer of 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

Vette Tie Corporation Has Developed the Following Manufacturing Overhead Standards