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Acuff Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below:
Acuff Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below:
Original Budget | Actual Costs | |||||
Fixed overhead costs: | ||||||
Supervision | $ | 15,600 | $ | 15,950 | ||
Utilities | 5,000 | 5,070 | ||||
Factory depreciation | 6,800 | 6,700 | ||||
Total overhead cost | $ | 27,400 | $ | 27,720 | ||
The company based its original budget on 6,200 machine-hours. The company actually worked 6,560 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 6,420 machine-hours. What was the overall fixed manufacturing overhead budget variance for the month?
$972 Unfavorable
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