Goolden Electronics Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs).

The company had budgeted its fixed manufacturing overhead cost at $58,000 for the month and its level of activity at 2,500 MHs.

The actual total fixed manufacturing overhead was $61,200 for the month and the actual level of activity was 2,600 MHs.

What was the fixed manufacturing overhead budget variance for the month to the nearest dollar?

Question 8 options:

	$880 Unfavorable
	$3,200 Favorable
	$880 Favorable
	$3,200 Unfavorable