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Temores Corporation Applies Manufacturing Overhead to Products on the Basis

Question 10

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Temores Corporation applies manufacturing overhead to products on the basis of standard machine-hours.The company's predetermined overhead rate for fixed manufacturing overhead is $1.50 per machine-hour and the denominator level of activity is 5,600 machine-hours.In the most recent month,the total actual fixed manufacturing overhead was $8,510 and the company actually worked 5,840 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 5,980 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month?


A) $360 favorable
B) $360 unfavorable
C) $570 favorable
D) $210 favorable

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