Standard Corporation Has Developed Standard Manufacturing Overhead Costs Based on a Capacity

Multiple Choice

Standard Corporation has developed standard manufacturing overhead costs based on a capacity of 180,000 direct labor-hours (DLHs) as follows: Standard overhead costs per unit:
Variable portion: 2 DLHs × $3 per DLH = $6
Fixed portion: 2 DLHs × $5 per DLH = $10
The following data pertain to operations in April:
The fixed manufacturing overhead budget variance for April was:

A) $40,000 Unfavorable
B) $40,000 Favorable
C) $60,000 Favorable
D) $60,000 Unfavorable