Question

Bruley Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The company's predetermined overhead rate for fixed manufacturing overhead is $5.10 per machine-hour and the denominator level of activity is 5,300 machine-hours. In the most recent month, the total actual fixed manufacturing overhead was $27,230 and the company actually worked 5,230 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 5,250 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month?

$357 Favorable
$255 Unfavorable
$357 Unfavorable
$102 Favorable

Answer 1

$102 Favorable

Step-by-step explanation:

rate $5.1

Actual overhead 27,230

Actual Machine Hours 5,230

Standart Machine Hours 5,250

rate (std hours - actual hours) volume variance

$5.1 (5,250 - 5,230) = 5.1 x 20 = 102F