Rainbolt 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$343,000 Budgeted hours 70,000machine-hours Actual production (a) 37,000unitsStandard hours per unit (b) 2.00machine-hoursStandard hours allowed for the actual production (a) × (b) 74,000machine-hours Actual fixed manufacturing overhead$363,000 Actual hours 77,500machine-hours?The fixed overhead volume variance is:
A. $400 U
B. $19,600 F
C. $19,600 U
D. $400 F
Answer: B
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