Mauve Company Uses a Standard Cost System in Which It

question 16

Multiple Choice

Mauve Company uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of standard direct labor-hours (DLHs) .The following data pertain to last month: $\begin{array}{c}\begin{array}{lll}\text { Actual hours worked..........................................}\\\text { Budgeted fixed manufacturing overhead costs....}\\\text { Actual fixed manufacturing overhead costs........}\\\text { Standard hours allowed.....................................}\\\text { Predetermined overhead rate............................}\end{array}\begin{array}{lll}2,400 & \text { DLHs } \\\$ 10,000 & \\\$ 10,400 & \\2,500 & \text { DLHs } \\\$ 5 & \text { per DLH }\end{array}\end{array}$
The fixed manufacturing overhead budget variance is:

• A)$400 U
• B)$500 F
• C)$300 F
• D)$300 U

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