Question

Asper Corporation has provided the following data for February. Denominator level of activity 9,700 machine-hours Budgeted fixed manufacturing overhead costs $ 288,420 Fixed component of the predetermined overhead rate $ 36.60 per machine-hour Actual level of activity 9,900 machine-hours Standard machine-hours allowed for the actual output 10,200 machine-hours Actual fixed manufacturing overhead costs $ 279,960 The budget variance for February is:

Answer 1

Answer:

Fixed Budget Variance
Budgeted Fixed Manufacturing Overheads	$288,420
Fixed Overhead Cost Applied (Refer Note)	$288,456
Fixed Overhead Volume Variance	$ 36	Favorable
Note:
Std machine hours allowed for the actual output	10,200	MHs
Std Fixed Overhead Rate per machine hour ($288,420 / Denominator level of activity 10,200 MHs)	$28.28(approximately)	Per MH
Applied Fixed Overhead Cost	$288,456