An outdoor barbecue grill manufacturer has a standard costing system based on standard direct labor hours (DLHs) as the measure of activity. Data from the company’s flexible budget for manufacturing overhead are given below:
Denominator level of activity…………………………. 3,900 DLHs
Fixed overhead cost…………………………………… $49,530
The following data pertain to operations for the most recent period:
Actual hours…………………………………………… 3,800 DLHs
Standard hours allowed for the actual output……. 3,861 DLHs
Actual total fixed manufacturing overhead cost…. $50,230
What was the fixed manufacturing overhead budget variance for the period to the nearest dollar?
a. $806 U
b. $700 U
c. $1,970 F
d. $1,195 F