Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided the following information for its most recent year:

What is the fixed overhead budget variance?

Multiple Choice

a. $23,000 U

b. $23,000 F

c. $10,000 U

d. $10,000 F

TotalbudgetedfixedoverheadcostfortheyearActualfixedoverheadcostfortheyearBudgeteddirectlabor-hoursActualdirectlabor-hoursStandarddirectlabor-hoursallowedfortheactualoutput$300,000$277,00060,00056,00058,000