The 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 Standard labor hours per unit 5,775 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 hours. Fergie's total overhead variance is: a. $1,680 b. $6,160 c. $7,840 d. $22,400

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 7EB: A company estimates its manufacturing overhead will be $840,000 for the next year. What is the...
icon
Related questions
Question

Need answer the accounting question

The 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
Standard labor hours per unit
5,775
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 hours.
Fergie's total overhead variance is:
a. $1,680
b. $6,160
c. $7,840
d. $22,400
Transcribed Image Text:The 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 Standard labor hours per unit 5,775 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 hours. Fergie's total overhead variance is: a. $1,680 b. $6,160 c. $7,840 d. $22,400
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning