Lambda Company, which produces tool boxes, uses a standard cost system and carries all inventories at standard. The standard manufacturing overhead costs per switch are based on direct labour hours and are shown below:

Variable overhead (5 hours @ $12 per direct manufacturing labour hour)$ 60

Fixed overhead (5 hours @ $15* per direct manufacturing labour hour)75

Total overhead per box$135

*Based on capacity of 200,000 direct manufacturing labour hours per month.

The following information is available for the month of December:

46,000 boxes were produced although 40,000 boxes were scheduled to be produced.

225,000 direct manufacturing labour hours were worked at a total cost of $5,625,000.

Variable manufacturing overhead costs were $2,750,000.

Fixed manufacturing overhead costs were $3,050,000.

5.The variable overhead spending variance for December was

a. $10,000 F.b. $50,000 U.c. $60,000 F.d. $350,000 U.

6.The variable manufacturing overhead efficiency variance for December was

a. $10,000 F.b. $50,000 U.c. $60,000 F.d. $350,000 U.

7.The fixed manufacturing overhead spending variance for December was

a.$50,000 U.b.$400,000 F.c.$450,000 F.d.$775,000 F.

8.The fixed overhead production volume variance for December was

a. $50,000 U.b.$400,000 F.c.$450,000 F.d.$775,000 F.

9.What amount should be credited to the allocated manufacturing overhead control account for the month of December?

a. $5,700,000b.$5,760,000c.$5,800,000d.$6,210,000

10.Under the 2-variance method, the flexible budget variance for December was

a. $100,000 U.b.$50,000 U.c.$40,000 U.d.$10,000 F.

11.Under the 3-variance method, the spending variance for December was

a. $100,000 U.b.$50,000 U.c.$40,000 U.d.$10,000 F.