Hugh Corporation Applies Manufacturing Overhead to Products on the Basis

Multiple Choice

Hugh 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:
The company based its original budget on 6,700 machine-hours. The company actually worked 6,810 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 6,940 machine-hours. What was the overall fixed manufacturing overhead budget variance for the month?

A) $960 favorable
B) $370 unfavorable
C) $960 unfavorable
D) $370 favorable