Question 14.

A manufacturer of playground equipment has a standard costing system based on machine hours (MHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:

Denominator Level of Activity	3,100 MHs
Fixed Overhead Cost	$42,200

The following data pertain to operations for the most recent period:

Actual Hours	3,600 MHs
Standard Hours Allowed for the Actual Output	3,700 MHs
Actual Total Fixed Overhead Cost	$41,000

What was the fixed overhead budget variance for the period, rounded to the nearest dollar?

Question 14 options:

	$950 unfavourable.
	$1,200 favourable.
	$2,790 favourable.
	$4,470 unfavourable.