Question

0.33/1 Question 6 View Policies Show Attempt History Current Attempt in Progress Whispering Corporation accumulates the following data relative to jobs started and finished during the month of June 2020. Costs and Production Data Raw materials unit cost Raw materials units Direct labor payroll Direct labor hours Manufacturing overhead incurred Manufacturing overhead applied Machine hours expected to be used at normal capacity Budgeted fixed overhead for June Variable overhead rate per machine hour Fixed overhead rate per machine hour Actual Standard $2.10 $2.00 11,400 11,000 $169,860 $165,680 14.900 15,200 $211,720 $214,320 43,500 $73,950 $3.00 $1.70 Overhead is applied on the basis of standard machine hours.3.00 hours of machine time are required for each direct labor hour. The jobs were sold for $487,000. Selling and administrative expenses were $39,300. Assume that the amount of raw materials purchased equaled the amount used.

Answer 1

total overhead variance = manufacturing overhead incurred - manufacturing overhead applied

= $211720 - $214320

= $2600 Favorable