Hugh Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below:
The company based its original budget on 6,700 machine-hours. The company actually worked 6,810 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 6,940 machine-hours. What was the overall fixed manufacturing overhead budget variance for the month?
A) $960 favorable
B) $370 unfavorable
C) $960 unfavorable
D) $370 favorable

Question

Hugh Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below: 
The company based its original budget on 6,700 machine-hours. The company actually worked 6,810 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 6,940 machine-hours. What was the overall fixed manufacturing overhead budget variance for the month?
A) $960 favorable 
B) $370 unfavorable 
C) $960 unfavorable 
D) $370 favorable

Quizplus · Accepted Answer

The Answer of Hugh Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below: 
The company based its original budget on 6,700 machine-hours. The company actually worked 6,810 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 6,940 machine-hours. What was the overall fixed manufacturing overhead budget variance for the month?
A) $960 favorable 
B) $370 unfavorable 
C) $960 unfavorable 
D) $370 favorable

Hugh Corporation Applies Manufacturing Overhead to Products on the Basis