Question
Denby Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual fixed manufacturing overhead costs for the most recent month
Denby Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual fixed manufacturing overhead costs for the most recent month appear below:
STANDARD COST PER LITER $43.60
STANDARD QUANITY PER OUTPUT 8.0
COST OF MATERIAL IN JUNE PER LITER $43.10
MATERIAL PURCHASE IN JUNE LITERS 1,700
The company based its original budget on 6,400 machine-hours. The company actually worked 6,710 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 6,540 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month?
Group of answer choices
$3,286 Favorable
$3,286 Unfavorable
$1,484 Unfavorable
$1,484 Favorable
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