Multiple Choice Question 179

The following information was taken from the annual manufacturing overhead cost budget of Sheffield Corp..

Variable manufacturing overhead costs$61360Fixed manufacturing overhead costs$28320Normal production level in labor hours23600Normal production level in units5900Standard labor hours per unit4

During the year, 5725 units were produced, 18840 hours were worked, and the actual manufacturing overhead was $88600. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours. Sheffield's volume overhead variance is

$1580 U.

$14885 U.

$840 U.

$740 U.