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:
-What was the fixed manufacturing overhead budget variance for the period to the nearest dollar?
A)$1,800 U
B)$222 F
C)$1,010 U
D)$785 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: 
-What was the fixed manufacturing overhead budget variance for the period to the nearest dollar?
A)$1,800 U 
B)$222 F 
C)$1,010 U 
D)$785 U

Quizplus · Accepted Answer

Budget variance = Actual fixed overhead - Budgeted fixed overhead cost
= $97,340 - $95,540 = $1,800 U

A Manufacturing Company Uses a Standard Costing System in Which