Trumbauer Incorporated makes a single product-an electrical motor used in many long-haul trucks. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Budgeted fixed manufacturing overhead$157,410     Budgeted production (a) 15,000unitsStandard hours per unit (b) 1.80machine-hoursBudgeted hours (a) × (b) 27,000machine-hours    Applying Overhead:   Actual production (a) 12,000unitsStandard hours per unit (b) 1.80machine-hoursStandard hours allowed for the actual production (a) × (b) 21,600machine-hours    Actual fixed manufacturing overhead$144,410 Actual hours 21,800machine-hours?The fixed overhead

volume variance is:

A. $31,482 F
B. $31,482 U
C. $18,482 F
D. $18,482 U


Answer: B

Business

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