Stopyra Incorporated makes a single product-a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:     Budgeted variable manufacturing overhead$28,200  Budgeted fixed manufacturing overhead$89,280  Budgeted hours 12,000labor-hours      Actual production (a) 16,000units Standard hours per unit (b) 0.60labor-hours Standard hours allowed for the actual production (a) × (b) 9,600labor-hours      Actual variable manufacturing overhead$26,967  Actual fixed manufacturing overhead$74,280  Actual hours 8,900labor-hours ?The fixed overhead budget variance is:

A. $15,000 F
B. $2,856 F
C. $15,000 U
D. $2,856 U


Answer: A

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