Answer
For 2014, \$365,000 in total manufacturing overhead is expensed under variable costing, either through Cost of Goods Sold or as a period expense.
Work Step by Step
Under variable costing, we need to consider both variable and fixed manufacturing overhead expenses. Here's the breakdown of the variable costing expenses:
Variable Manufacturing Overhead = \$150,000 (calculated in Question 4)
For fixed manufacturing overhead, we already calculated it as \$230,000 in Question 2. Therefore, the total manufacturing overhead expensed under variable costing is:
Total Manufacturing Overhead (Variable + Fixed) = Variable Manufacturing Overhead + Fixed Manufacturing Overhead
Total Manufacturing Overhead = \$150,000 + \$230,000
Total Manufacturing Overhead = \$380,000
However, since we are considering the expenses, we need to subtract the variable manufacturing overhead related to the ending inventory to get the total expensed.
Variable Manufacturing Overhead Expensed = Total Manufacturing Overhead - (Variable Manufacturing Overhead for Ending Inventory)
Variable Manufacturing Overhead Expensed = \$380,000 - \$15,000 (calculated in Question 1)
Variable Manufacturing Overhead Expensed = \$365,000
