Aase Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs).The company has provided the following data for the most recent month: What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?
A)$2,040 favorable
B)$600 unfavorable
C)$2,640 favorable
D)$600 favorable

Question

Aase Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs).The company has provided the following data for the most recent month:  What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?
A)$2,040 favorable 
B)$600 unfavorable 
C)$2,640 favorable 
D)$600 favorable

Quizplus · Accepted Answer

Variable overhead rate variance:
 11eaaee8_66ba_43cc_933a_7d6ce4414f52_TB5186_00 Fixed overhead budget variance:
 11eaaee8_66ba_6add_933a_2fd0a38c6510_TB5186_00 Total = $600 U + $0 = $600 U

Aase Corporation Has a Standard Cost System in Which It