Songster Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below: Original BudgetActual CostsFixed overhead costs: Supervision$14,100 $13,650 Utilities 5,300 5,060 Factory depreciation 7,200 7,470 Total overhead cost$26,600 $26,180 ?The company based its original budget on 3,500 machine-hours. The company actually worked 3,700 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 3,820 machine-hours. What was the overall fixed manufacturing overhead budget variance for the month?
A. $420 Favorable
B. $2,432 Favorable
C. $2,432 Unfavorable
D. $420 Unfavorable
Answer: A
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