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Problem:
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 hoursActual hours worked 14,000 hoursStandard hours allowed for the output 12,000 hoursFlexible budget fixed overhead cost $45,000Actual 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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