Meridian Fashions Uses Standard Costs for Their Manufacturing Division A) $51,600 F
B) $51,600 U
C) $14,000 F
D)

Meridian Fashions uses standard costs for their manufacturing division. The allocation base for overhead costs is direct labor hours. From the following data, calculate the fixed overhead cost variance. $$\begin{array} { | l | r | } \hline \text { Actual fixed overhead } & \$ 38,000 \\\hline \text { Budgeted fixed overhead } & \$ 24,000 \\\hline \text { Standard overhead allocation rate } & \$ 9 \\\hline \text { Standard direct labor hours per unit } & 4 \text { DLHr } \\\hline \text { Actual output } & 2100 \text { units } \\\hline\end{array}$$

A) $51,600 F
B) $51,600 U
C) $14,000 F
D) $14,000 U