Solved

An Outdoor Barbecue Grill Manufacturer Has a Standard Costing System

Question 150

Multiple Choice

An outdoor barbecue grill manufacturer has a standard costing system based on direct labour hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:
 Denominator Level of Activity 3,300 DLHs  Fixed Overhead Cost $26,895\begin{array}{|l|r|}\hline \text { Denominator Level of Activity } & 3,300 \text { DLHs } \\\hline \text { Fixed Overhead Cost } & \$ 26,895 \\\hline\end{array}
The following data pertain to operations for the most recent period:
 Actual Hours 3,400DLHs Standard Hours Allowed for the Actual Output 3,420DLHs Actual Total Fixed Overhead Cost $28,295\begin{array}{|l|r|}\hline \text { Actual Hours } & 3,400 \mathrm{DLHs} \\\hline \text { Standard Hours Allowed for the Actual Output } & 3,420 \mathrm{DLHs} \\\hline \text { Actual Total Fixed Overhead Cost } & \$ 28,295 \\\hline\end{array}
-What was the fixed overhead budget variance for the period,rounded to the nearest dollar?


A) $166 unfavourable.
B) $422 favourable.
C) $585 favourable.
D) $1,400 unfavourable.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents