Question-fixed overhead budget variance
Course:- Managerial Accounting
Reference No.:- EM1350508

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Jessep Corporation has a standard cost system in which manufacturing overhead is applied to units of product on the basis of direct labor hours. The company has provided the following data concerning its fixed manufacturing overhead costs in March:

Denominator hours 15,000 hours
Actual hours worked 14,000 hours
Standard hours allowed for the output 12,000 hours
Flexible budget fixed overhead cost $45,000
Actual fixed overhead costs $48,000

The fixed overhead budget variance is:
A) $1,000 U.
B) $3,000 U.
C) $2,000 U.
D) $2,000 F.

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