The Following Information Was Taken from the Annual Manufacturing Overhead

question 146

Multiple Choice

The following information was taken from the annual manufacturing overhead cost budget of Fergie Manufacturing. $\begin{array}{lr}\text { Variable manufacturing overhead costs } & \$ 92,400 \\\text { Fixed manufacturing overhead costs } & \$ 55,440 \\\text { Normal production level in labor hours } & 30,800 \\\text { Normal production level in units } & 5,775 \\\text { Standard labor hours per unit } & 4\end{array}$ 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 total overhead variance is

• A)$1,680 U.
• B)$6,160 U.
• C)$7,840 U.
• D)$22,400 U.

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Definitions:

Digital Audio

Sound that has been captured, stored, or processed in a digital format.

Sampling Rate

The number of samples taken per unit of time (often per second) in a digital audio or video recording, which determines the quality of the playback.

Bit Rate

The rate at which bits are transferred or processed, often measured in bits per second (bps), used in digital media to denote audio or video quality.

Digital Audio

Sound that has been encoded in a digital format for processing, storage, or transmission.