Sebastian Company, which manufactures electrical switches, uses a standard cost system and carries all inventories at standard. The standard manufacturing overhead costs per switch are based on direct labor hours and are shown below:

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

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

Total overhead per switch $135

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

The following information is available for the month of December:

• 46,000 switches were produced although 40,000 switches were scheduled to be produced.
• 225,000 direct manufacturing labor 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.

1) The total variable manufacturing overhead variance was

a) $10,000 F

b) $10,000 U

c) $110,000 U

d) $110,000 F

2) The fixed overhead production-volume variance for December was

a) $450,000 F

b) $400,000 F

c) $50,000 U

d) $775,000 F