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Dellarocco Incorporated makes a single product--a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Budgeted fixed manufacturing overhead $ 355,740 Budgeted hours 49,000 labor-hours Actual fixed manufacturing overhead $ 372,740 Actual hours 45,600 labor-hours The fixed overhead budget variance is:

Sagot :

Answer:

the fixed overhead budget variance is $17,000 unfavorable

Explanation:

The computation of the fixed overhead budgeted variance is shown below:

= Budgeted overhead - actual overhead

= $355,740 - $372,740

= $17,000 unfavorable

Since the budgeted overhead is less than the actual overhead so it is an unfavorable variance

Hence, the fixed overhead budget variance is $17,000 unfavorable

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