Mattern Corporation Applies Manufacturing Overhead to Products on the Basis

question 57

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:
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

---

Definitions:

Quality

The standard of something as measured against other things of a similar kind; the degree of excellence of something.

Productivity

Refers to the efficiency of production in terms of the amount of goods or services produced relative to the inputs used, such as labor and capital.

NLRA

The National Labor Relations Act, US legislation that protects the rights of employees to organize and to bargain collectively with their employers.

Global Market

An international economic system allowing goods, services, and capital to move across national borders, increasing market competition globally.