At the beginning of last year,Monze Corporation budgeted $600,000 of fixed manufacturing overhead and chose a denominator level of activity of 100,000 direct labor-hours.At the end of the year,Monze's fixed manufacturing overhead budget variance was $8,000 unfavorable.Its fixed manufacturing overhead volume variance was $21,000 favorable.Actual direct labor-hours for the year were 96,000.What was Monze's actual fixed manufacturing overhead for last year?
A) $563,000
B) $579,000
C) $608,000
D) $592,000

Question

Quizplus · Accepted Answer

Budget variance = Actual fixed overhead - Budgeted fixed overhead
$8,000 U = Actual fixed overhead - $600,000
$8,000 = Actual fixed overhead - $600,000
Actual fixed overhead = $8,000 + $600,000
Actual fixed overhead = $608,000

At the Beginning of Last Year,Monze Corporation Budgeted $600,000 of Fixed