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September 23, 2014

Homework Help: Accounting

Posted by Anonymous on Tuesday, July 23, 2013 at 2:02pm.

The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows:
Standard Costs
Fixed overhead (based on 10,000 hours) 3 hours @ $.80 per hour
Variable overhead 3 hours @ $2.00 per hour

Actual Costs
Total variable cost, $18,000
Total fixed cost, $8,000



The amount of the factory overhead controllable variance is:
Answer

A.$2,000 unfavorable

B.$3,000 favorable

C.$0

D.$3,000 unfavorable

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