Acuff Corporation Applies Manufacturing Overhead to Products on the Basis

question 47

Multiple Choice

Acuff Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below: The company based its original budget on 6,200 machine-hours. The company actually worked 6,560 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 6,420 machine-hours. What was the overall fixed manufacturing overhead budget variance for the month?

• A)$320 Favorable
• B)$320 Unfavorable
• C)$972 Favorable
• D)$972 Unfavorable

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Definitions:

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