Question
Rostad Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below:
Rostad Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below: |
Original Budget | Actual Costs | |
Variable overhead costs: | ||
Supplies | $6,000 | $6,190 |
Indirect labor | 10,540 | 9,890 |
Fixed overhead costs: | ||
Supervision | 13,810 | 14,310 |
Utilities | 13,100 | 13,150 |
Factory depreciation | 55,440 | 54,890 |
Total overhead costs | $98,890 | $98,430 |
The company based its original budget on 6,100 machine-hours. The company actually worked 6,060 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 5,990 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month? (Do not round intermediate calculations.) |
$1,389 unfavorable
$1,485 unfavorable
$1,389 favorable
$1,485 favorable
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