Managerial Accounting Variance Question Need Help Today!!

Question

Teana Corporation uses machine hours as its denominator activity for fixed manufacturing overhead. For the most recent year, the company showed the following data:
At the beginning of the year :
Budgeted Machine Hours (denominator level) : 600,000 Machine Hours
At the end of the year:
Actual Fixed Manufacturing Overhead : $260,000
Fixed Manufacturing Overhead Budget Variance : $20,000 Favorable
Fixed Manufacturing Overhead Volume Variance : $15,000 Favorable

Question : Teana's standard machine hours allowed for actual output was closest to ?
A) 562,500 Machine Hours B) 632,143 Machine Hours C) 637,500 Machine Hours D) 567,857 Machine Hours E) None
Answer was B) but I need help with steps as to how.

Answer 1

Fixed MFG overhead budget variance= Budgeted Fixed MFG overhead - Actual fixed Mfg OH $260,000= 20,000 favorable. Then Budgeted fixed MFG OH = 260,000+20,000= $280,000.

Budgeted Fixed Mfg OH absorption rate= 280,000/ 600,000 Machine hrs=$.46666/M hrs

To solve for standard machine hrs allowed for actual output= $15,000/.46666+600,000= 632,143 Machine hours