Steinhagen Corporation Applies Manufacturing Overhead to Products on the Basis

question 24

Multiple Choice

Steinhagen 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 2,600 machine-hours.The company actually worked 2,790 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 2,960 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month?

• A)$5,148 Favorable
• B)$5,148 Unfavorable
• C)$2,717 Favorable
• D)$2,717 Unfavorable

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Definitions:

Slope

is a measure of the steepness or inclination of a line, calculated as the ratio of the vertical change to the horizontal change between two points on the line.

Positive

Expressing or implying affirmation, agreement, or permission; in economics, may refer to aspects such as positive externalities or positive growth rates.

Decreasing

Refers to a situation where a quantity or level is going down or diminishing over time.

Positive

A term often used in economics and finance to denote values or changes that signify growth, improvement, or gains.