Songster Corporation Applies Manufacturing Overhead to Products on the Basis

Multiple Choice

Songster 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: The company based its original budget on 3,500 machine-hours. The company actually worked 3,700 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 3,820 machine-hours. What was the overall fixed manufacturing overhead budget variance for the month?

A) $2,432 Favorable
B) $2,432 Unfavorable
C) $420 Favorable
D) $420 Unfavorable