Gayman Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The company bases its predetermined overhead rate on 7,300 machine-hours. The company's total budgeted fixed manufacturing overhead is $28,470. In the most recent month, the total actual fixed manufacturing overhead was $28,940. The company actually worked 7,510 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 7,670 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month?
A) $819 favorable
B) $819 unfavorable
C) $470 unfavorable
D) $1,443 favorable

Question

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The Answer of Gayman Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The company bases its predetermined overhead rate on 7,300 machine-hours. The company's total budgeted fixed manufacturing overhead is $28,470. In the most recent month, the total actual fixed manufacturing overhead was $28,940. The company actually worked 7,510 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 7,670 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month?
A) $819 favorable
B) $819 unfavorable
C) $470 unfavorable
D) $1,443 favorable

Gayman Corporation Applies Manufacturing Overhead to Products on the Basis