We are asked to solve for the fixed budget variance given the Shamrock Manufacturing has the following values:
Total Production Units = 1,350
Overhead Cost per Unit = $2.75
Actual Fixed Overhead Cost = $4,400
Solving for Fixed Budget Variance (FBV), we have:
FBV = Actual Fixed Overhead Cost - Total Production*Overhead Cost per Unit
FBV = $4,400 - (1350 * $2.75)
FBV = $687.50
The answer is $687.50.
