Network Enterprises incurred actual fixed manufacturing overhead costs of $20,800 for the month of September. If the fixed manufacturing overhead budget variance was a favorable $6600 what were the budgeted fixed overhead costs?
A)$6600
B)$27,400
C)$14,200
D)$20,800

Question

Quizplus · Accepted Answer

Fixed Manufacturing Overhead Budget Variance = Budgeted Fixed Manufacturing Overhead Costs - Actual Fixed Manufacturing Overhead Costs

$6,600 = Budgeted Fixed Manufacturing Overhead Costs - $20,800

Budgeted Fixed Manufacturing Overhead Costs = $27,400, thus the answer is B.

Network Enterprises Incurred Actual Fixed Manufacturing Overhead Costs of $20,800