Marine Products Inc.'s, budget for the current year include budgeted fixed overhead of $200,000; budgeted direct labor hours of 100,000; budgeted units produced of 50,000.Unit standards allow 2 direct labor hours for each unit produced, therefore, fixed overhead is applied at the rate of $4 per unit.Marine Product's actual fixed overhead for the current year amounted to $204,000 and the company produced 48,000 units. Marine Products Inc.'s, fixed overhead budget variance for the year is:

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The fixed overhead budget variance is the difference between the actual fixed overhead and the budgeted fixed overhead. The actual fixed overhead is $204,000, and the budgeted fixed overhead is $200,000, resulting in a variance of $4,000 unfavorable (U).