Teall Corporation has a standard cost system in which it applies manufacturing overhead to products on the basis of standard machine-hours (MHS). The company has provided the following data for the most recent month: Budgeted level of activity Actual level of activity Standard variable manufacturing overhead rate Budgeted fixed manufacturing overhead cost Actual total variable manufacturing overhead Actual total fixed manufacturing overhead What was the fixed manufacturing overhead budget variance for the month? 8,600 MHS 8,700 MHS $ 5.80 per MH 51,000 $ $ 52,600 $ 55,100
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![Teall Corporation has a standard cost system in which it applies manufacturing overhead to products on the
basis of standard machine-hours (MHS). The company has provided the following data for the most recent
month:
Budgeted level of activity
Actual level of activity
Standard variable manufacturing overhead rate
Budgeted fixed manufacturing overhead cost
Actual total variable manufacturing overhead
Actual total fixed manufacturing overhead
What was the fixed manufacturing overhead budget variance for the month?
8,600 MHS
8,700 MHS
$5.80 per MH
$ 51,000
$ 52,600
$ 55,100](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc6417a73-df1a-49f0-a1f4-45b871598085%2F7782c236-dd4c-4fba-9c16-bef95bf21597%2F1ecks2h_processed.jpeg&w=3840&q=75)
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