Mendelssohn Manufacturing, Inc. uses a standard costing system with fixed manufacturing overhead (FMOH) applied based on machine-hours (MHs). According to their standards, each unit of their most popular product requires 2 MHs.

For the most recent period: Budgeted Units Actual Units Actual MHS 1,600 units 1,586 units 3,400 MHS Budget 44,800 FMOH $ Actual 45,200 $ The FMOH volume variance for the period was closest to: $392.00 Unfavorable $400.00 Unfavorable $3,004.24 Unfavorable $2,800.00 Favorable None of the above