Denby Corporation Applies Manufacturing Overhead to Products on the Basis

Multiple Choice

Denby Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual fixed manufacturing overhead costs for the most recent month appear below: The company based its original budget on 6,400 machine-hours. The company actually worked 6,710 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 6,540 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month?

A) $3,286 Favorable
B) $1,484 Unfavorable
C) $3,286 Unfavorable
D) $1,484 Favorable