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Jane Glass Works uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of direct labor-hours.


 

Jane Glass Works uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of direct labor-hours. Each unit requires two standard hours of labor for completion. The activity for the year was based on budgeted production of 200,000 units. Total overhead was budgeted at $900,000 for the year, and the fixed overhead rate was $3.00 per unit. The actual data pertaining to the manufacturing overhead for the year are presented below: Actual production 198,000 units Actual direct labor- direct labor- hours 440,000 hours Actual variable overhead $352,000 Actual fixed overhead $575,000 Jane's fixed overhead budget variance for the year is:

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