Kuhlman 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 2,800 machine-hours. The company actually worked 2,730 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 2,860 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month?
A) $623 unfavorable
B) $534 unfavorable
C) $623 favorable
D) $534 favorable

Question

Kuhlman 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 2,800 machine-hours. The company actually worked 2,730 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 2,860 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month?
A) $623 unfavorable 
B) $534 unfavorable 
C) $623 favorable 
D) $534 favorable

Quizplus · Accepted Answer

The Answer of Kuhlman 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 2,800 machine-hours. The company actually worked 2,730 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 2,860 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month?
A) $623 unfavorable 
B) $534 unfavorable 
C) $623 favorable 
D) $534 favorable

Kuhlman Corporation Applies Manufacturing Overhead to Products on the Basis