Steinhagen Corporation Applies Manufacturing Overhead to Products on the Basis

Multiple Choice

Steinhagen 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 2,600 machine-hours. The company actually worked 2,790 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 2,960 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month?

A) $5,148 Favorable
B) $5,148 Unfavorable
C) $2,717 Favorable
D) $2,717 Unfavorable