An outdoor barbecue grill manufacturer uses a standard costing system in which standard machine-hours (MHs) is the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: Denominator level of activity 4,600MHsFixed overhead cost$50,140 ?The following data pertain to operations for the most recent period: Actual hours 5,000MHsStandard hours allowed for the actual output 4,743MHsActual total fixed manufacturing overhead cost$48,690 ?The fixed manufacturing overhead budget variance for the period is closest to:
A. $1,450 F
B. $3,009 U
C. $5,810 U
D. $2,503 F
Answer: A
Business
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