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VLD [36.1K]
3 years ago
12

Reidenbach Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The budgeted fixed man

ufacturing overhead cost for the most recent month was $17,100 and the actual fixed manufacturing overhead cost for the month was $17,450. The company based its original budget on 4,500 machine-hours. The standard hours allowed for the actual output of the month totaled 4,810 machine-hours. What was the overall fixed manufacturing overhead budget variance for the month
Business
1 answer:
sineoko [7]3 years ago
4 0

Answer:

$350 unfavorable

Explanation:

The computation of the overall fixed manufacturing overhead budget variance is shown below:

The overall fixed manufacturing overhead budget variance for the month = Actual fixed manufacturing overhead cost - The budgeted fixed manufacturing overhead cost

= $17,450 - $17,100

= $350 unfavorable

Since as the actual fixed  manufacturing overhead cost exceeds than the  budgeted fixed manufacturing overhead cost  so this leads to unfavorable variance

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