Aymond Electronics Corporation Has a Standard Cost System in Which

question 29

Multiple Choice

Aymond Electronics Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) . The company had budgeted its fixed manufacturing overhead cost at $42,700 for the month and its level of activity at 2,000 MHs. The actual total fixed manufacturing overhead was $44,100 for the month and the actual level of activity was 1,800 MHs. What was the fixed manufacturing overhead budget variance for the month to the nearest dollar?

• A) $5,670 favorable
• B) $1,400 favorable
• C) $5,670 unfavorable
• D) $1,400 unfavorable

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Definitions:

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