Sheffield Corp. prepared a fixed budget of 80000 direct labor hours, with estimated overhead costs of $400000 for variable overhead and $90000 for fixed overhead. Sheffield then prepared a flexible budget at 74000 labor hours. How much is total overhead costs at this level of activity?

$490000

$453250

$460000

$370000

Crane Company uses flexible budgets. At normal capacity of 6000 units, budgeted manufacturing overhead is: $18000 variable and $270000 fixed. If Stone had actual overhead costs of $292400 for 8000 units produced, what is the difference between actual and budgeted costs?

$1600 unfavorable

$4800 unfavorable

$1600 favorable

$6400 favorable