Desormeaux Corporation Applies Manufacturing Overhead to Products on the Basis

question 47

Multiple Choice

Desormeaux Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The budgeted fixed manufacturing overhead cost for the most recent month was $21,600 and the actual fixed manufacturing overhead cost for the month was $21,120. The company based its original budget on 5,400 machine-hours. The standard hours allowed for the actual output of the month totaled 5,850 machine-hours. What was the overall fixed manufacturing overhead budget variance for the month?

• A) $1,800 favorable
• B) $1,800 unfavorable
• C) $480 favorable
• D) $480 unfavorable

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