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Lossing Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and...

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Accounting

Lossing 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 Budget Actual Costs
Variable overhead costs:
Supplies $ 6,400 $ 6,590
Indirect labor 10,580 9,930
Fixed overhead costs:
Supervision 14,210 14,350
Utilities 13,500 13,550
Factory depreciation 57,440 57,250
Total overhead cost $ 102,130 $ 101,670

The company based its original budget on 6,500 machine-hours. The company actually worked 6,460 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 6,390 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month? (Round your intermediate calculations to 2 decimal places.)

Garrison 16e Rechecks 2017-10-31

Multiple Choice

$1,345 favorable

$1,441 favorable

$1,441 unfavorable

$1,345 unfavorable

Answer & Explanation Solved by verified expert
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