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 | $6,500 | $6,690 |
Indirect labor | 10,590 | 9,940 |
Fixed overhead costs: | ||
Supervision | 14,310 | 14,360 |
Utilities | 13,600 | 13,650 |
Factory depreciation | 57,230 | 57,130 |
Total overhead costs | $102,230 | $101,770 |
The company based its original budget on 6,600 machine-hours. The company actually worked 6,560 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 6,490 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month? (Do not round intermediate calculations.) |
a. $1,323 favorable
b. $1,419 unfavorable
c. $1,419 favorable
d. $1,323 unfavorable
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