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Monty Manufacturing builds playground equipment that it sells to elementary schools and municipalities. Monty's management has contracted you to perform a variance analysis on the

Monty Manufacturing builds playground equipment that it sells to elementary schools and municipalities. Monty's management has contracted you to perform a variance analysis on the fixed manufacturing overhead for its line of slides. Monty's cost accounting team informs you that it allocates fixed overhead based on machine hours. This period production was budgeted at

35

slides. Budgeted and actual production data follows:

Standard fixed overhead cost per machine hour

$5.00

Standard machine hours per slide

9

Actual production

390

Actual fixed overhead cost

$20,000

What is the fixed manufacturing overhead volume variance in this period?

A.

$18,425

unfavorable

B.

$15,975

unfavorable

C.

$15,975

favorable

D.

$18,425

favorable

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