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