(Appendix 10A) Standard Corporation Has Developed Standard Manufacturing Overhead Costs

question 139

Multiple Choice

(Appendix 10A) Standard Corporation has developed standard manufacturing overhead costs based on a capacity of 180,000 direct labor-hours (DLHs) as follows:
Standard overhead costs per unit:
Variable portion: 2 DLHs × $3 per DLH = $6
Fixed portion: 2 DLHs × $5 per DLH = $10
The following data pertain to operations in April:

-The fixed manufacturing overhead budget variance for April was:

• A) $40,000 Unfavorable
• B) $40,000 Favorable
• C) $60,000 Favorable
• D) $60,000 Unfavorable

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Definitions:

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