Acuff Corporation Applies Manufacturing Overhead to Products on the Basis

Multiple Choice

Acuff Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below: The company based its original budget on 6,200 machine-hours. The company actually worked 6,560 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 6,420 machine-hours. What was the overall fixed manufacturing overhead budget variance for the month?

A) $320 Favorable
B) $320 Unfavorable
C) $972 Favorable
D) $972 Unfavorable