Use the Following Information to Answer the Following Questions

question 23

Multiple Choice

Use the following information to answer the following Questions
Sigmo Company, which uses a standard cost system, budgeted $800,000 of fixed overhead when 50,000 machine hours were anticipated. Other data for the period were:
Actual units produced: 10,600
Actual machine hours worked: 51,800
Actual variable overhead incurred: $475,000
Actual fixed overhead incurred: $790,100
Standard variable overhead rate per machine hour: $8.50
Standard production time per unit: 5 hours

-Sigmo's fixed-overhead budget variance is:

• A) $9,900U.
• B) $9,900F.
• C) $28,800U.
• D) $28,800F.
• E) None of the answers is correct.

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Definitions:

Managerial Responsibility

The duty and accountability held by managers to make decisions, oversee operations, and ensure the strategic objectives of the organization are met.

Controllable Costs

Expenses that can be directly controlled or influenced by a manager or decision-maker within a certain time frame.

Budgetary Control

A management tool used for monitoring and controlling costs by comparing actual performance with budgeted expectations, facilitating corrective actions.

Controlling Operations

This refers to the process of monitoring, managing, and adjusting a company's or organization's operations to meet set goals and objectives.