The Management of Brown & Company Is Analyzing Fixed Manufacturing

Multiple Choice

The management of Brown & Company is analyzing fixed manufacturing overhead variances for the fiscal period just ended. For the period, Brown & Company had budgeted $800,000 in fixed manufacturing overhead but had actually incurred $580,000. Also, the standard fixed overhead rate was $20 per machine hour and Brown & Company had allowed for 50,000 machine hours.
What is Brown & Company's fixed overhead budget variance?

A) $ 220,000 (F)
B) $ 220,000 (U)
C) $ 600,000 (F)
D) $ 440,000 (F)