Asper Corporation has provided the following data for February.
| Denominator level of activity | 8,200 | machine-hours | |
| Budgeted fixed manufacturing overhead costs | $ | 271,920 | |
| Fixed component of the predetermined overhead rate | $ | 35.10 | per machine-hour |
| Actual level of activity | 8,400 | machine-hours | |
| Standard machine-hours allowed for the actual output | 8,700 | machine-hours | |
| Actual fixed manufacturing overhead costs | $ | 264,960 | |
The budget variance for February is:
Multiple Choice
Explanation
Budget variance = Actual fixed overhead − Budgeted fixed overhead
= $264,960 − $271,920
= $6,960 F
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