A furniture manufacturer 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)$2,675 U
B)$1,450 F
C)$3,691 F
D)$1,270 F

Question

A furniture manufacturer 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)$2,675 U 
B)$1,450 F 
C)$3,691 F 
D)$1,270 F

Quizplus · Accepted Answer

Budget variance = Actual fixed overhead - Budgeted fixed overhead cost
= $38,975 - $40,425
= $1,450 F

A Furniture Manufacturer Uses a Standard Costing System in Which