Question
Teall Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has
Teall Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs). The company has provided the following data for the most recent month: Budgeted level of activity 8,700 MHs Actual level of activity 8,800 MHs Standard variable manufacturing overhead rate $ 5.90 per MH Budgeted fixed manufacturing overhead cost $ 52,000 Actual total variable manufacturing overhead $ 53,600 Actual total fixed manufacturing overhead $ 56,200 What was the fixed manufacturing overhead budget variance for the month?
Multiple Choice $4,200 Unfavorable $590 Unfavorable $590 Favorable $4,200 Favorable
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