A furniture manufacturer has a standard costing system based on standard direct labor-hours (DLHs) as 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)$4,286 F
B)$1,800 U
C)$2,775 F
D)$1,575 F

Question

A furniture manufacturer has a standard costing system based on standard direct labor-hours (DLHs) as 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)$4,286 F 
B)$1,800 U 
C)$2,775 F 
D)$1,575 F

Quizplus · Accepted Answer

Budget variance = Actual fixed overhead - Budgeted fixed overhead cost
= $68,100 - $66,300 = $1,800 U

A Furniture Manufacturer Has a Standard Costing System Based on Standard