Mattern Corporation Applies Manufacturing Overhead to Products on the Basis

question 5

Multiple Choice

Mattern Corporation applies manufacturing overhead to products on the basis of standard machine-hours.Budgeted and actual fixed manufacturing overhead costs for the most recent month appear below: $\begin{array}{llcc} &\text {Original Budget } & \text { Actual Costs }\\ \text {Fixed manufacturing overhead costs: } &\\ \text { Supervision } &\$16,470&\$16,930\\ \text {Utilities } &14,030&14,030\\ \text { Factory depreciation } &\underline{45,140}&\underline{45,520}\\ \text { Total fixed manufacturing overhead cost. } &\underline{\underline{\$75,640}}&\underline{\underline{\$76,480}}\\\end{array}$
The company based its original budget on 6,100 machine-hours.The company actually worked 5,710 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 5,540 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month?

• A)$4,836 unfavorable
• B)$4,836 favorable
• C)$6,944 unfavorable
• D)$6,944 favorable

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