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Massachusetts Institute Of Technology Operations And Supply Chain Management Assignment Help - Outdoor barbecue grill


Question - 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?

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