Dosier Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs).The company has provided the following data for the most recent month: What was the fixed manufacturing overhead budget variance for the month?
A)$2,000 unfavorable
B)$2,000 favorable
C)$610 unfavorable
D)$610 favorable

Question

Dosier Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs).The company has provided the following data for the most recent month:  What was the fixed manufacturing overhead budget variance for the month?
A)$2,000 unfavorable 
B)$2,000 favorable 
C)$610 unfavorable 
D)$610 favorable

Quizplus · Accepted Answer

Budget variance = Actual fixed overhead - Budgeted fixed overhead cost
= $63,000 - $65,000 = $2,000 F

Dosier Corporation Has a Standard Cost System in Which It