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1. Theh following information was taken from the annual manufacturing overhead c

ID: 2376378 • Letter: 1

Question

1. Theh following information was taken from the annual manufacturing overhead cost budget of Fergie manufacturing


Variable manufacturing overhead costs: $92,000

Fixed Manufacturing overhead costs: 55,440

Normal Production level in labor hours: 30,800

Normal Production level in units: 5,775

Standard labor hours per unit: 4


During the year, 5,600 units were produced, 18,340 hours were worked, and the actual manufacturing overhead was $151,200. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor horus. Fergie's total overhead variance is:


a. $1,680

b. $6,160

c. $7,840

d. $22,400



2. Using the information above what is Fergie's controllable overhead variance?


a. $1,680

b. $6,160

c. $7,840

d. $22,400

Explanation / Answer

b. $6,160