A manufacturing company uses a standard costing system in which standard machine-hours (MHs)is the measure of activity.Data from the company's flexible budget for manufacturing overhead are given below: The following data pertain to operations for the most recent period: The fixed manufacturing overhead budget variance for the period is closest to:
A)$900 F
B)$452 F
C)$3,734 F
D)$3,450 U

Question

A manufacturing company uses a standard costing system in which standard machine-hours (MHs)is the measure of activity.Data from the company's flexible budget for manufacturing overhead are given below:  The following data pertain to operations for the most recent period:  The fixed manufacturing overhead budget variance for the period is closest to:
A)$900 F 
B)$452 F 
C)$3,734 F 
D)$3,450 U

Quizplus · Accepted Answer

Budget variance = Actual fixed overhead - Budgeted fixed overhead cost
= $76,875 - $77,775 = $900 F

A Manufacturing Company Uses a Standard Costing System in Which