Hoag Corporation Applies Manufacturing Overhead to Products on the Basis

Multiple Choice

Hoag 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 2,600 machine-hours. The company actually worked 2,280 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 2,080 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month?

A) $4,352 Favorable
B) $4,352 Unfavorable
C) $7,072 Unfavorable
D) $7,072 Favorable