Meister Electronics Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs).The company had budgeted its fixed manufacturing overhead cost at $68,800 for the month and its level of activity at 2,000 MHs.The actual total fixed manufacturing overhead was $73,300 for the month and the actual level of activity was 1,800 MHs.What was the fixed manufacturing overhead budget variance for the month to the nearest dollar?
A)$11,380 unfavorable
B)$4,500 unfavorable
C)$11,380 favorable
D)$4,500 favorable

Question

Quizplus · Accepted Answer

Budget variance = Actual fixed overhead - Budgeted fixed overhead cost
= $73,300 - $68,800 = $4,500 U

Meister Electronics Corporation Has a Standard Cost System in Which