Annual Manufacturing Overhead Assignment

The following information was taken from the annual manufacturing overhead cost budget of Fergie Manufacturing. Variable manufacturing overhead costs Fixed manufacturing overhead costs $92,400 $55,440 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 volume overhead variance is $1,680 U $6,160 U $7,840 U $22,400 U. .