Brighton Tech Industries has a standard cost system in which it applies manufacturing overhead to products based on standard machine hours (MHS). The budgeted fixed manufacturing overhead cost for the month was $75,000. The budgeted level of activity was 4,500 MHs. The actual total fixed manufacturing overhead was $73,800. The actual level of activity was 4,200 MHS. Calculate the fixed manufacturing overhead budget variance for the month (to the nearest dollar).

Brighton Tech Industries has a standard cost system in which it applies manufacturing overhead to products based on standard machine hours (MHS). The budgeted fixed manufacturing overhead cost for the month was $75,000. The budgeted level of activity was 4,500 MHs. The actual total fixed manufacturing overhead was $73,800. The actual level of activity was 4,200 MHS. Calculate the fixed manufacturing overhead budget variance for the month (to the nearest dollar).

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 21E: Georgia Gasket Co. budgets 8,000 direct labor hours for the year. The total overhead budget is...

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