River Mills manufactures reproduction antique furniture using historic manufacturing methods. River often uses waterpower, which is not only historically accurate, but also saves energy costs. Although River uses oldminusfashioned manufacturing techniques it is still a modern company that performs modern business analysis. River incurred actual fixed manufacturing overhead costs of $265,000. Using standard costing, River allocated $255,000 in fixed manufacturing overhead costs. If River observed a $1,500 unfavorable fixed manufacturing overhead volume variance, what amount ha

Complete Question

River Mills manufactures reproduction antique furniture using historic manufacturing methods. River often uses waterpower, which is not only historically accurate, but also saves energy costs. Although River uses oldminus fashioned manufacturing techniques it is still a modern company that performs modern business analysis. River incurred actual fixed manufacturing overhead costs of $265,000. Using standard costing, River allocated $255,000 in fixed manufacturing overhead costs. If River observed a $1,500 unfavorable fixed manufacturing overhead volume variance, what amount had management budgeted for fixed manufacturing overhead?

The budgeted fixed manufacturing overhead  is   R  =  $256500

Explanation:

From the question we are told that

   The actual actual fixed manufacturing overhead costs  is  k =  $265,000

   The  fixed manufacturing overhead costs is   u =  $255,000

     The fixed manufacturing overhead volume variance c =  $ 1,500

The budgeted fixed manufacturing overhead is  

substituting values

            R  =  $256500

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