Meister Electronics Corporation Has a Standard Cost System in Which

Multiple Choice

Meister Electronics Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) .The company had budgeted its fixed manufacturing overhead cost at $68,800 for the month and its level of activity at 2,000 MHs.The actual total fixed manufacturing overhead was $73,300 for the month and the actual level of activity was 1,800 MHs.What was the fixed manufacturing overhead budget variance for the month to the nearest dollar?

A) $11,380 unfavorable
B) $4,500 unfavorable
C) $11,380 favorable
D) $4,500 favorable