Question 35(1 point)

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Jaune Company uses a standard cost system that applies manufacturing overhead to units of product on the basis of direct labour hours (DLHs). The following data pertain to last month's operations:

Budgeted Fixed Overhead Costs $5,000

Actual Fixed Overhead Costs $5,000

Standard Hours Allowed for Output 2,400 DLHs

Predetermined Overhead Rate ($2 variable + $3 fixed) $5 per DLH

What was the fixed overhead budget variance?

Question 35 options:

A)

$500 favourable.

B)

$500 unfavourable.

C)

$1,700 unfavourable.

D)

$2,200 unfavourable.