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

5,500F

9000u

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

First, calculate the budgeted variable overhead cost:
Budgeted variable overhead cost = Budgeted variable overhead rate x Actual production
= $3 x 11,700 units

Next, calculate the actual variable overhead cost:
Actual variable overhead cost = $170,000

Now, find the difference between the actual and budgeted variable overhead cost:
Factory overhead controllable variance = Actual variable overhead cost - Budgeted variable overhead cost

If the result is positive, it indicates a favorable variance (F), and if it's negative, it indicates an unfavorable variance (U).

Substituting the values into the equation:
Factory overhead controllable variance = $170,000 - ($3 x 11,700)

Calculating:
Factory overhead controllable variance = $170,000 - $35,100

Simplifying:
Factory overhead controllable variance = $134,900

Since the result is positive, the factory overhead controllable variance is $134,900F.

Therefore, the correct answer is not listed.