Dellarocco Incorporated makes a single product--a cooling coil used in commercial refrigerators.The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period.Data concerning the most recent year appear below: The fixed overhead budget variance is:
A)$37,328 U
B)$37,328 F
C)$17,000 F
D)$17,000 U

Question

Dellarocco Incorporated makes a single product--a cooling coil used in commercial refrigerators.The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period.Data concerning the most recent year appear below:  The fixed overhead budget variance is:
A)$37,328 U 
B)$37,328 F 
C)$17,000 F 
D)$17,000 U

Quizplus · Accepted Answer

Budget variance = Actual fixed overhead - Budgeted fixed overhead
= $372,740 - $355,740 = $17,000 U

Dellarocco Incorporated Makes a Single Product--A Cooling Coil Used in Commercial