Problem 1. Information about the production and sales of its only product during its first month of operations:
Sales ($225 per unit) $405,000
Direct materials used $176,000
Direct labor $100,000
Variable factory overhead $44,000
Fixed factory overhead $80,000
Variable selling and administrative expenses $20,000
Fixed selling and administrative expenses $10,000
Ending inventories:
Direct materials -0-
WIP -0-
Finished goods 200 units
The cost of goods sold under variable costing is_____.
a. $320,000
b. $360,000
c. $288,000
d. $272,000
Problem 2. Company's overhead cost information is given below:
Standard applied overhead $210,000
Budgeted overhead based on standard machine hours allowed $230,000
Budgeted overhead based on actual machine hours used $215,000
Actual overhead $200,000
a. Compute the total overhead variance.