Tropiano Electronics Corporation Has a Standard Cost System in Which

Multiple Choice

Tropiano Electronics Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHs) . The company had budgeted its fixed manufacturing overhead cost at $62,100 for the month and its level of activity at 3,200 MHs. The actual total fixed manufacturing overhead was $61,600 for the month and the actual level of activity was 3,000 MHs. What was the fixed manufacturing overhead budget variance for the month to the nearest dollar?

A) $3,381 Unfavorable
B) $500 Favorable
C) $500 Unfavorable
D) $3,381 Favorable