Web Company Uses a Standard Cost System in Which Manufacturing

question 107

Multiple Choice

Web Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of machine-hours.During February,the company used a denominator activity of 80,000 machine-hours in computing its predetermined fixed overhead rate.However,only 75,000 standard machine-hours were allowed for the month's actual production.If the fixed overhead volume variance for February was $6,400 unfavourable,then the total budgeted fixed overhead cost for the month was:

• A) $96,000.
• B) $98,600.
• C) $100,000.
• D) $102,400.

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