26. Somalian Corporation uses a standard costing system. Information for the month of May is as follows: $80,000 Actual manufacturing overhead costs ($26,000 is fixed) Direct labor: 12,000 hrs. 10,000 hrs. $18 Actual hours worked Standard hours allowed for actual production Average actual labor cost per hour e factory overhead rate is based on a normal volume of 12,000 direct labor hours. Standard cost data at 12,000 direct labor hours were as follows: $48,000 24,000 $12.002 Variable factory overhead Fixed factory overhead Total factory overhead What is the variable overhead efficiency variance for Somalian? a $2,000 (U) b. $20,000 (U) c. $4,000 (U) d. $8,000 (U) 27. Croissant Company's standard fixed overhead cost is $6 per direct labor hour based on budgeted fixed costs of $600,000. The standard allows 1 direct labor hour per unit. During 2014, Croissant produced 110,000 units of product, incurred $630,000 of fixed overhead costs, and recorded 212,000 actual hours of direct labor. What is the standard activity level on which Croissant based its fixed overhead rate? a. 100,000 direct labor hours b. 105,000 direct labor hours c. 110,000 direct labor hours d. 50,000 direct labor hours 28. If actual fixed manufacturing overhead was $55,000 and there was a $1,400 unfavorable spending variance and a $1,000 unfavorable volume variance, budgeted fixed manufacturing overhead must have been a. $57,400 b. $53,600. c. $$4,000. d. $51,700 29. Fixed manufacturing overhead was budgeted at $105,000, and 25,000 direct labor hours were budgeted. If the fixed overhead volume variance was $4,000 unfavorable and the fixed overhead spending variance was $1,500 favorable, fixed manufacturing overhead applied must be a. $109,000. b. $106,500. c. $106,500. d. $101,000