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 | $5,800 | $5,990 |
Indirect labor | 10,520 | 9,870 |
Fixed overhead costs: | ||
Supervision | 13,610 | 14,290 |
Utilities | 12,900 | 12,950 |
Factory depreciation | 54,320 | 53,590 |
Total overhead costs | $97,150 | $96,690 |
The company based its original budget on 5,900 machine-hours. The company actually worked 5,860 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 5,790 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month?(Do not round intermediate calculations.) |
$1,507 unfavorable
$1,507 favorable
$1,411 favorable
$1,411 unfavorable
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