Mattern Corporation applies manufacturing overhead to products on the basis of s
ID: 2389024 • Letter: M
Question
Mattern Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual fixed manufacturing overhead costs for the most recent month appear below:
The company based its original budget on 6,100 machine-hours. The company actually worked 5,710 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 5,540 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month?
a. $4,836 unfavorable b. $4,836 favorable c. $6,944 unfavorable d. $6,944 favorable
Explanation / Answer
Volume variance is Applied FOH- Budgeted FOH 5540 * 75640/6100= Applied 68696- 75640= 6,944 Unfavorable C)