Nexus Industries Uses a Standard Costing System to Apply Manufacturing

Multiple Choice

Nexus Industries uses a standard costing system to apply manufacturing costs to its production process. In May, Nexus anticipated producing 2050 units with fixed manufacturing overhead costs allocated at $8.4 per direct labor hour with a standard of 2.5 direct labor hours per unit. In May, actual production was 3300 units and actual fixed manufacturing overhead costs were $29,000. What was Nexus' fixed manufacturing overhead budget variance in May?

A) $14,050 favorable
B) $14,050 unfavorable
C) $26,250 favorable
D) $26,250 unfavorable