Mclellan Corporation Applies Manufacturing Overhead to Products on the Basis

question 46

Multiple Choice

Mclellan Corporation applies manufacturing overhead to products on the basis of standard machine-hours.Budgeted and actual overhead costs for the month appear below:
The company based its original budget on 6,100 machine-hours.The company actually worked 6,480 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 6,370 machine-hours.What was the overall fixed manufacturing overhead budget variance for the month?

• A) $500 Favorable
• B) $500 Unfavorable
• C) $1,570 Favorable
• D) $1,570 Unfavorable

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Definitions:

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