Ask Question
15 June, 10:19

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:

Multiple Choice

a. $17,000 U

b. $17,000 F

c. $37,328 U

d. $37,328 F

+5
Answers (1)
  1. 15 June, 14:16
    0
    Option (a) $17,000 U

    Explanation:

    Data provided in the question:

    Budgeted fixed manufacturing overhead = $355,740

    Budgeted hours = 49,000 labor-hours

    Actual fixed manufacturing overhead = $372,740

    Actual hours = 45,600 labor-hours

    Now,

    The fixed overhead budget variance

    = Budgeted fixed manufacturing overhead - Actual fixed manufacturing overhead

    = $355,740 - $372,740

    = - $17,000

    Here negative sign mean the Unfavorable

    Hence,

    Option (a) $17,000 U
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Dellarocco Incorporated makes a single product--a cooling coil used in commercial refrigerators. The company has a standard cost system in ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers