Coskey Corporation Applies Manufacturing Overhead to Products on the Basis

Multiple Choice

Coskey Corporation applies manufacturing overhead to products on the basis of standard machine-hours.Budgeted and actual overhead costs for the month appear below: The company based its original budget on 3,900 machine-hours.The company actually worked 3,580 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 3,770 machine-hours.What was the overall fixed manufacturing overhead budget variance for the month?

A) $1,280 favorable
B) $320 favorable
C) $320 unfavorable
D) $1,280 unfavorable