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Bartoletti Fabrication Corporation has a standard cost system in which it applies manufacturing overhead to...

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Accounting

Bartoletti Fabrication Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) at $8.30 per MH. The company had budgeted its fixed manufacturing overhead cost at $62,000 for the month. During the month, the actual total variable manufacturing overhead was $66,840 and the actual total fixed manufacturing overhead was $66,000. The actual level of activity for the period was 7,400 MHs. What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?

Multiple Choice

$5,420 Favorable

$9,420 Unfavorable

$9,420 Favorable

$5,420 Unfavorable

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