Sommers Fabrication Corporation Has a Standard Cost System in Which

Multiple Choice

Sommers Fabrication Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) at $9.70 per MH.The company budgeted its fixed manufacturing overhead cost at $67,000 for the month.During the month,the actual total variable manufacturing overhead was $66,660 and the actual total fixed manufacturing overhead was $70,000.The actual level of activity for the period was 6,600 MHs.What was the total of the variable overhead rate and fixed manufacturing overhead budget variances for the month?

A) $2,640 unfavorable
B) $5,640 favorable
C) $2,640 favorable
D) $5,640 unfavorable