Denby Corporation Applies Manufacturing Overhead to Products on the Basis

question 55

Multiple Choice

Denby Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual fixed manufacturing overhead costs for the most recent month appear below: The company based its original budget on 6,400 machine-hours. The company actually worked 6,710 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 6,540 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month?

• A)$3,286 Favorable
• B)$1,484 Unfavorable
• C)$3,286 Unfavorable
• D)$1,484 Favorable

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Definitions:

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