Annual manufacturing overhead cost budget

Reference no: EM13126243

The following information was taken from the annual manufacturing overhead cost budget of Coen Company.

Variable manufacturing overhead costs $46,200
Fixed manufacturing overhead costs $27,720
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 $75,600. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours.

Coen's controllable overhead variance is

A) $840 U.

B) $3,080 U.

C) $3,920 U.

D) $11,200 U.

Reference no: EM13126243

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