The Dillon Corporation makes and sells a single product.Overhead costs are applied on the basis of standard direct labor-hours.The standard cost card shows that 5 direct labor-hours are required per unit.The Dillon Corporation had the following budgeted and actual data for March: The fixed manufacturing overhead budget variance for March is:
A)$900 F
B)$3,900 F
C)$3,000 U
D)$7,750 F

Question

The Dillon Corporation makes and sells a single product.Overhead costs are applied on the basis of standard direct labor-hours.The standard cost card shows that 5 direct labor-hours are required per unit.The Dillon Corporation had the following budgeted and actual data for March:  The fixed manufacturing overhead budget variance for March is:
A)$900 F 
B)$3,900 F 
C)$3,000 U 
D)$7,750 F

Quizplus · Accepted Answer

Budget variance = Actual fixed overhead - Budgeted fixed overhead
= $80,000 - $77,000
= $3,000 U

The Dillon Corporation Makes and Sells a Single Product