Web Company Uses a Standard Cost System That Applies Manufacturing

question 226

Multiple Choice

Web Company uses a standard cost system that applies manufacturing overhead 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 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,what was the total budgeted fixed overhead cost for the month?

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

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