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The following information was taken from the annual manufacturing overhead cost budget of Fergie Manufacturing. Variable manufacturing overhead costs $ 9 2 , 4 0

The following information was taken from the annual manufacturing overhead cost budget of Fergie Manufacturing.
Variable manufacturing overhead costs $92,400
Fixed manufacturing overhead costs $55,440
Normal production level in labor hours 23,100
Normal production level in units 5,775
Standard labor hours per unit 4
During the year, 5,600 units were produced, 18,340 hours were worked, and the actual manufacturing overhead was $151,200. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours. Fergie's volume overhead variance is:
a. $1,680 U.
b. $6,160 U.
c. $7,840 U.
d. $22,400 U.

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