Sultzer Corporation Applies Manufacturing Overhead to Products on the Basis

question 34

Multiple Choice

Sultzer 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 3,000 machine-hours.The company actually worked 2,730 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 2,690 machine-hours.What was the overall fixed manufacturing overhead budget variance for the month?

• A)$3,317 favorable
• B)$160 unfavorable
• C)$3,317 unfavorable
• D)$160 favorable

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