my question

Problem 11-58: Flexible Budget, Overhead Variances, pages 519-520

Flexible Budget, Overhead Variances Shumaker Company manufactures a line of high-top basketball shoes. At the beginning of the year, the following plans for production and costs were revealed:

Pairs of shoes to be produced and sold 55,000

Standard cost per unit:

Direct materials $15

Direct labor 12

VOH 6

FOH 3

Total unit cost $36

During the year, a total of 50,000 units were produced and sold. The following actual costs were incurred:

Direct materials $775,000 VOH $310,000

Direct labor 590,000 FOH 180,000

There were no beginnings or ending inventories of raw materials. In producing the 50,000 units, 63,000 hours were worked, 5% more hours than the standard allowed for the actual output. Overhead costs are applied to production using direct labor hours.