4.

Aase Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month: Budget level of Activity.......... 6,400 MHs

Actual level actuvity.... 6,000 MHs

Cost formula for variable overhead cost .........$6.60 per MHs

Budgeted fixed manufacturing overhead cost ........ $66,000

Actual total variable overhead ............$ 40,200 ?? ???Acctual total fixed manufacturing over head.............. $66,000

What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month? a. $2,040 favorable b. $600 unfavorable c. $2,640 favorable d. $600 favorable