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The Hawkins Company uses a standard costing system in which manufacturing overhead is applied on the basis of standard direct labor-hours (DLHs) . During February, the company actually used 9,200 direct labor-hours and made 2,900 units of finished product. The standard cost card for one unit of product includes the following:
Variable factory overhead: 3 DLHs $4.75 per DLH
Fixed factory overhead: 3 DLHs $3.00 per DLH
For February, the company incurred $28,450 in fixed manufacturing overhead costs and recorded a $900 favorable volume variance.
-The amount of fixed manufacturing overhead cost contained in the company's budget for February is:
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