Jessep Corporation has a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. The company has provided the following data concerning its fixed manufacturing overhead costs in March: Actual machine-hours 14,000hoursStandard machine-hours allowed for the actual output 12,000hoursDenominator activity 15,000hoursActual fixed manufacturing overhead costs$48,000 Budgeted fixed manufacturing overhead costs$45,000 The fixed manufacturing overhead budget variance is:
A. $2,000 F
B. $3,000 U
C. $2,000 U
D. $1,000 U
Answer: B
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