The Following Information Relates to Tablerock Manufacturing's Overhead Costs for the Month

question 160

Essay

The following information relates to Tablerock Manufacturing's overhead costs for the month:
$\begin{array}{|l|l|}\hline\text { Static budget variable overhead } & \$ 14,200 \\\hline \text { Static budget fixed overhead } & \$ 5,600 \\\hline \text { Static budget direct labor hours } & 1,000 \text { hours } \\\hline \text { Static budget number of units } & 5,000 \text { units }\\\hline\end{array}$ Tablerock allocates variable manufacturing overhead to production based on standard direct labor hours.
Tablerock reported the following actual results for last month: actual variable overhead,$14,500; actual fixed overhead,$5,400; actual production of 4,700 units at 0.22 direct labor hours per unit.The standard direct labor time is 0.20 direct labor hours per unit.
Compute the variable overhead cost variance.(Round intermediate calculations to two decimal places and the answer to the nearest dollar.)

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Definitions:

Social Norms

The attitudes and standards of behavior expected of members of a particular group.

Conformity

The practice of aligning one's attitudes, beliefs, and actions with those of a group or conforming to its norms and politics.

Solomon Asch

A psychologist known for his research on conformity, demonstrating how group pressure can influence individual judgments.

Majority Opinion

The viewpoint or decision held or made by the greater number of participants in a given group.