Question

Loganville Resources has variable overhead costs of $150,240 and fixed overhead costs of $145,600. They made 24,000 units that used 62,400 direct labor hours. Loganville allows 2.5 labor hours per unit with a standard overhead rate of $4.60 per labor hour. Loganville reported a total overhead variance of $11,040 U. What did they do wrong?A. They used actual overhead costs as billed rather than calculated overhead costs based on direct labor hours worked.
B. They used the actual direct labor hours to calculate overhead applied rather than standard hours allowed.
C. They calculated actual overhead costs based on actual direct labor hours used rather than actual overhead costs.
D. They used standard hours allowed to calculate overhead applied rather than actual direct labor hours.

Answer 1

Answer:

Answer is C

Explanation: