The Joyner Corporation originally budgeted for $360,000 of fixed overhead. Production was budgeted to be 12,000 units. The standard hours for production were 5 hours per unit. The variable overhead rate was $3 per hour. Actual fixed overhead was $360,000 and actual variable overhead was $170,000. Actual production was 11,700 units.

Question

The Joyner Corporation originally budgeted for $360,000 of fixed overhead. Production was budgeted to be 12,000 units. The standard hours for production were 5 hours per unit. The variable overhead rate was $3 per hour. Actual fixed overhead was $360,000 and actual variable overhead was $170,000. Actual production was 11,700 units.

Compute the factory overhead controllable variance.

A. 9,000F
B. 9,000U
C. 5,500F
D. 5,500U

Answer 1

Use the space to provide the subject, not a generic term such as college.

Answer 2

To compute the factory overhead controllable variance, we need to compare the actual fixed overhead with the budgeted fixed overhead.

The formula for the factory overhead controllable variance is:

Factory Overhead Controllable Variance = Actual Fixed Overhead - Budgeted Fixed Overhead

Given:
Actual Fixed Overhead = $360,000
Budgeted Fixed Overhead = $360,000

Substituting these values into the formula, we have:

Factory Overhead Controllable Variance = $360,000 - $360,000 = $0

Therefore, the factory overhead controllable variance is $0.

The correct answer to the question is not provided in the options given.