Answer questions 1-2 using the information below:

The following is a summary of the May 2016 operations of Reagan Company that makes and sells airplane models. Suppose that the company uses the FIFO method.

	Physical Units	Direct Materials	Conversion Costs
WIP, beginning inventory	28,000	$39,200	$30,800
Degree of completion for BI		100%	25%
Started in May	60,000
Completed and transferred out in May	66,000
WIP, ending inventory	22,000
Degree of completion for EI		100%	50%
Costs added in May		$90,000	$280,000

1.What is the amount of direct materials cost assigned to ending WIP at the end of May?

Group of answer choices

$39,200

$44,000

$22,000

$33,000

2.

What is the cost of goods transferred out during May?

Group of answer choices

$447,000

$517,000

$293,000

$363,000

Norland Company's total overhead budget for 2018 shows variable overhead costs of $36,000 and fixed overhead costs of $32,000. The budgeted output was 25,000 units. Actual total overhead costs incurred in 2018 were $61,400 for an output of 20,000 units. The total overhead variance for Norland Co. for 2018 was:

Group of answer choices

$6,000 unfavorable

$7,000 unfavorable

$5,800 unfavorable

$6,400 unfavorable