Why is cengage saying – 920 is not the answer to my problem Working: 220,800/120,000 * 119500 – 220800 1.84 x 119500 – 220800 219880 – 220800 = -920 Problem:

Why is cengage saying – 920 is not the answer to my problem Working: 220,800/120,000 * 119500 – 220800 1.84 x 119500 – 220800 219880 – 220800 = -920 Problem:  Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 120,000 units requiring 480,000 direct labor hours. (Practical capacity is 500,000 hours.) Annual budgeted overhead costs total $792,000, of which $571,200 is fixed overhead. A total of 119,500 units using 478,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $261,300, and actual fixed overhead costs were $555,750.