Rodarta Corporation applies manufacturing overhead to products on the basis of s

Question

Rodarta Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The company's predetermined overhead rate for fixed manufacturing overhead is $3.40 per machine-hour and the denominator level of activity is 3,600 machine-hours. In the most recent month, the total actual fixed manufacturing overhead was $12,270 and the company actually worked 3,530 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 3,550 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month? Multiple Choice $68 Favorable $170 Unfavorable $238 Unfavorable $238 Favorable

Explanation / Answer

Ans:$238 U

Explanation:

$3.40 per MH (3600 MHs – 3530 MHs)

= $3.40 per MH x 70 MHs = $238 U

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