Kuhlman Corporation Applies Manufacturing Overhead to Products on the Basis

Multiple Choice

Kuhlman Corporation applies manufacturing overhead to products on the basis of standard machine-hours.Budgeted and actual overhead costs for the most recent month appear below: $\begin{array}{lcc}&\text { Original Budget }&\text { Actual Costs }\\\text { Variable overhead costs: }\\\text { Supplies.......................... } & \$ 4,480 & \$ 4,310 \\\text { Indirect labor.................. } & 3,360 & 3,630\\\text { Fixed overhead costs:} &\\ \text { Supervision..................... } &2,800&2,8100\\ \text { Utilities...........................} &7,840&7,820\\ \text { Factory depreciation....... } &\underline{14,280}&\underline{14,260}\\ \text { Total overhead cost......... } &\underline{\$32,760}&\underline{\$32,830}\end{array}$
The company based its original budget on 2,800 machine-hours.The company actually worked 2,730 machine-hours during the month.The standard hours allowed for the actual output of the month totaled 2,860 machine-hours.What was the overall fixed manufacturing overhead volume variance for the month?

A) $623 unfavorable
B) $534 unfavorable
C) $623 favorable
D) $534 favorable