Manufacturing overhead variance

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Reference no: EM13126831

Mansfield Corporation estimates its manufacturing overhead costs to be $160,000 and its direct labor costs to be $320,000 for 2007. The actual manufacturing labor costs were $80,000 for job 1, $120,000 for job 2 and $160,000 for job 3 during 2007. Manufacturing overhead is applied to jobs on the basis of direct labor costs using a predetermined overhead rate. The actual manufacturing overhead cost for the year was $172,000.

The amount of the manufacturing overhead variance during 2007 was:

a) $ 8,000 Overapplied

b) $12,000 Overapplied

c) $12,000 Underapplied

d) $ 8,000 Underapplied

Reference no: EM13126831

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