. Information about the production and sales of its only product during its first month of operations

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. Information about the production and sales of its only product during its first month of operations

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

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.

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