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 | $7,800 | $7,990 |
Indirect labor | 10,720 | 10,070 |
Fixed overhead costs: | ||
Supervision | 15,610 | 14,490 |
Utilities | 14,900 | 14,950 |
Factory depreciation | 59,970 | 61,040 |
Total overhead costs | $109,000 | $108,540 |
The company based its original budget on 7,800 machine-hours. The company actually worked 7,760 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 7,690 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month? (Do not round intermediate calculations.) |
$1,180 favorable
$1,276 favorable
$1,276 unfavorable
$1,180 unfavorable
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