Desormeaux Corporation Applies Manufacturing Overhead to Products on the Basis

Multiple Choice

Desormeaux Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The budgeted fixed manufacturing overhead cost for the most recent month was $21,600 and the actual fixed manufacturing overhead cost for the month was $21,120. The company based its original budget on 5,400 machine-hours. The standard hours allowed for the actual output of the month totaled 5,850 machine-hours. What was the overall fixed manufacturing overhead budget variance for the month?

A) $1,800 favorable
B) $1,800 unfavorable
C) $480 favorable
D) $480 unfavorable