Michetti Corporation Applies Manufacturing Overhead to Products on the Basis

Multiple Choice

Michetti Corporation applies manufacturing overhead to products on the basis of standard machine-hours.Budgeted and actual overhead costs for the month appear below: $\begin{array}{c}\begin{array}{lll}\text { Variable overhead costs: }\\\text {Supplies}\\\text {Indirect labor}\\\text {Fixed overhead costs:}\\\text {Supervision}\\\text {Utilities.}\\\text {Factory depreciation.}\\\text {Total overhead cost.}\end{array}\begin{array}{lll}\text { Original Budget }&\text {Actual Costs }\\\\\$ 9,030 & \$ 8,520 \\24,510 & 23,510 \\\\13,000 & 13,420 \\5,100 & 5,520 \\\underline{7,700} &\underline{ 7,710} \\\underline{ \$ 59,340} &\underline{ \$ 58,680 } \end{array}\end{array}$


The company based its original budget on 4,300 machine-hours.The company actually worked 4,140 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 4,200 machine-hours.What was the overall fixed manufacturing overhead budget variance for the month?

A) $660 favorable
B) $660 unfavorable
C) $850 unfavorable
D) $850 favorable