Question
Systems Controls, which manufactures industrial switches, uses a standard-costing system. The standard manufacturing overhead (MOH) costs assigned per switch are based on direct-labor hours (DLH)
Systems Controls, which manufactures industrial switches, uses a standard-costing system. The standard manufacturing overhead (MOH) costs assigned per switch are based on direct-labor hours (DLH) as follows:
Variable MOH (5 DLH @ $8.00 per hour)$40
Fixed MOH (5 DLH @ $12.00 per hour)60
Total MOH per switch$ 100
Additional information is available for the month of October:
Actual Variable MOH costs were $2,550,000
Actual Fixed MOH costs were $3,750,000
60,000 switches were budgeted to be produced
56,000 switches were actually produced
275,000 DLH were worked at a total direct labor cost of $2,868,250.
Thevariable-overheadspendingvariance is:
Group of answer choices
$310,000 U
$350,000 U
$318,250 F
$350,000 F
$40,000 F
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