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:

A.$2,000 unfavorable

B.$3,000 favorable


D.$3,000 unfavorable

  1. 👍
  2. 👎
  3. 👁
  1. 1000

    1. 👍
    2. 👎
  2. A. 2.000 unfavorable

    1. 👍
    2. 👎
  3. A. 2,000 unfavorable

    1. 👍
    2. 👎

Respond to this Question

First Name

Your Response

Similar Questions

  1. Microeconomics

    A computer company produces affordable, easy-to-use home computer systems and has fixed costs of $250. The marginal cost of producing computers is $700 for the first computer, $250 for the second, $300 for the third, and $350 for

  2. business calculus

    Assume it costs Microsoft $4,700 to manufacture 7 Xbox 360s and $8,690 to manufacture 14. Obtain the corresponding linear cost function.

  3. accounting

    prepare entries to record the following summarized operations related to production for a company using a job order cost system: a. materials purchased on account-$167000 b. prepaid expenses incurred on account-$12200 c. materials

  4. Accounting 7

    Noteworthy, Inc., produces and sells small electronic keyboards. Assume that you have the following information about Noteworthy’s costs for the most recent month. Depreciation on factory equipment $800 Depreciation on CEO's

  1. ch 2

    Westan Corporation uses a predetermined overhead rate of $23.20 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $278,400 of total manufacturing overhead for an estimated activity level of

  2. Accounting

    If fixed costs are $300,000, the unit selling price is $31, and the unit variable costs are $22, what is the break-even sales (units) if fixed costs are reduced by $30,000? Answer 30,000 units 8,710 units 12,273 units 20,000 units

  3. Accounting

    The standard costs and actual costs for direct labor for the manufacture of 2,500 actual units of product are as follows: Standard Costs Direct labor 7,500 hours @ $12.00 Actual Costs Direct labor 7,400 hours @ $11.40 The amount

  4. Accounting

    The following data relate to direct labor costs for the current period: Standard costs 6,000 hours at $12.00 Actual costs 7,500 hours at $11.60 What is the direct labor rate variance? Answer A.$15,000 unfavorable B.$3,000

  1. Accounting III

    What arguments can be advanced in favor of treating fixed manufacturing overhead costs as product costs? What arguments can be advanced in favor of treating fixed manufacturing overhead costs as period costs? Which arguments do

  2. Maths - Linear Programming

    Hey, I'm having trouble formulating this as a linear program. If anyone could help at all it would be much appreciated. Thanks A manufacturer has contracted to produce 2,000 units of a particular product over the next eight

  3. accounting

    A company has an overhead application rate of 125% of direct labor costs. How much overhead would be allocated to a job if it required total direct labor cost of $20,000? $5,000. $16,000. $25,000. $125,000. $250,000. The R&R

  4. Accounting

    During the period, labor costs incurred on account amounted to $250,000 including $200,000 for production orders and $50,000 for general factory use. In addition, factory overhead applied to production was $23,000. From the

You can view more similar questions or ask a new question.