Schenley Manufacturing Builds Playground Equipment That It Sells to Elementary

Multiple Choice

Schenley Manufacturing builds playground equipment that it sells to elementary schools and municipalities. Schenley's management has contracted you to perform a variance analysis on the fixed manufacturing overhead for its line of slides. Schenley's cost accounting team informs you that it allocates fixed overhead based on machine hours. This period production was budgeted at 375 slides. Budgeted and actual production data follows: What is the fixed manufacturing overhead budget variance for this period?

A) $2,750 unfavorable
B) $1,320 unfavorable
C) $2,750 favorable
D) $1,320 favorable