At the beginning of last year, Monze Corporation budgeted $600,000 of fixed manufacturing overhead and chose a denominator level of activity of 100,000 direct labor-hours.At the end of the year, Monze's fixed manufacturing overhead budget variance was $8,000 unfavorable.Its fixed manufacturing overhead volume variance was $21,000 favorable.Actual direct labor-hours for the year were 96,000.What was Monze's actual fixed manufacturing overhead for last year?
A)$563,000
B)$579,000
C)$608,000
D)$592,000

Question

Quizplus · Accepted Answer

Budget variance = Actual fixed overhead - Budgeted fixed overhead
$8,000 U = Actual fixed overhead - $600,000
$8,000 = Actual fixed overhead - $600,000
Actual fixed overhead = $8,000 + $600,000
Actual fixed overhead = $608,000

At the Beginning of Last Year, Monze Corporation Budgeted $600,000