Sigmo Company, Which Uses a Standard Cost System, Budgeted $800,000

Multiple Choice

Sigmo Company, which uses a standard cost system, budgeted $800,000 of fixed overhead when 50,000 machine hours were anticipated.Other data for the period were: Actual units produced: 10,600 Actual machine hours worked: 51,800 Actual variable overhead incurred: $475,000 Actual fixed overhead incurred: $790,100 Standard variable overhead rate per machine hour: $8.50 Standard production time per unit: 5 hours Sigmo's fixed-overhead budget variance is:

A) $9,900U.
B) $9,900F.
C) $28,800U.
D) $28,800F.
E) None of the answers is correct.