QUESTION 51

1. A manufacturing company 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	6,100 MHs
   Overhead Costs at the Denominator Activity Level:
   Variable Overhead Cost	$35,075
   Fixed Overhead Cost	$77,775

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

   Actual Hours	6,300 MHs
   Standard Hours Allowed for the Actual Output	5,994 MHs
   Actual Total Variable Overhead Cost	$36,540
   Actual Total Fixed Overhead Cost	$76,875

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

   		$452 favorable
   		$452 unfavorable
   		$900 unfavorable
   		$900 favorable