Semaan Corporation Applies Manufacturing Overhead to Products on the Basis

Multiple Choice

Semaan Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the month appear below: The company based its original budget on 2,700 machine-hours. The company actually worked 2,960 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 3,030 machine-hours. What was the overall fixed manufacturing overhead budget variance for the month?

A) $3,130 Unfavorable
B) $340 Unfavorable
C) $340 Favorable
D) $3,130 Favorable