Question
A manufacturing company has a standard costing system based on machine hours (MHs) as the measure of activity. Data from the company's flexible budget for
A manufacturing company has a standard costing system based on machine hours (MHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:
Denominator Level of Activity | 6,100 MHs |
Overhead Costs at the Denominator Activity Level: |
|
Variable Overhead Cost | $35,075 |
Fixed Overhead Cost | $77,775 |
The following data pertain to operations for the most recent period:
Actual Hours | 6,300 MHs |
Standard Hours Allowed for the Actual Output | 5,994 MHs |
Actual Total Variable Overhead Cost | $36,540 |
Actual Total Fixed Overhead Cost | $76,875 |
What was the fixed overhead volume variance for the period, rounded to the nearest dollar?
$1,352 unfavourable | ||
$1,359 unfavourable | ||
$2,550 favorable | ||
$3,902 unfavourable |
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