Homer Corporation has a standard cost system in which manufacturing overhead is applied on the basis of standard machine-hours.The company has provided the following data concerning its manufacturing overhead costs for last year: The fixed manufacturing overhead budget variance was:
A)$200 F
B)$400 U
C)$300 F
D)$240 U

Question

Homer Corporation has a standard cost system in which manufacturing overhead is applied on the basis of standard machine-hours.The company has provided the following data concerning its manufacturing overhead costs for last year:  The fixed manufacturing overhead budget variance was:
A)$200 F 
B)$400 U 
C)$300 F 
D)$240 U

Quizplus · Accepted Answer

Budget variance = Actual fixed overhead - Budgeted fixed overhead
= $3,800 - $4,000
= $200 F

Homer Corporation Has a Standard Cost System in Which Manufacturing