What is the budget variance?

a. 500 U

b. 2,000 U

c. 2,000 F

d. 3,000 U

e. None of the above

Actual total direct labor P 43,000 Actual direct labor hours used 14,000 Standard hours allowed for good output 15,000 Direct labor rate variance-debit Actual total overhead 1,400 P 32,000 P 9,000 Budgeted fixed cost Normal activity in hours 12,000 Total overhead application rate per standard direct labor hour P 2.25 What is the budget variance? Actual total direct labor P 43,000 Actual direct labor hours used 14,000 Standard hours allowed for good output 15,000 Direct labor rate variance-debit Actual total overhead 1,400 P 32,000 P 9,000 Budgeted fixed cost Normal activity in hours 12,000 Total overhead application rate per standard direct labor hour P 2.25 What is the budget variance