Masek 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)$2,360 Unfavorable
B)$1,000 Unfavorable
C)$2,360 Favorable
D)$1,000 Favorable

Question

Masek 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)$2,360 Unfavorable 
B)$1,000 Unfavorable 
C)$2,360 Favorable 
D)$1,000 Favorable

Quizplus · Accepted Answer

Budget variance = Actual fixed overhead - Budgeted fixed overhead cost
= $49,000 - $50,000
= $1,000 F

Masek Corporation Has a Standard Cost System in Which It