Variable factory overhead variance

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Marilee Company produced 6,000 units of product Y, which is 80% of capacity. Each unit required .25 standard machine hours for production. The standard variable factory overhead rate is $5.00/machine hour. The actual variable factory overhead incurred during the period was $8,000. The variable factory overhead variance (controllable)is:

A. $500 favorable

B. $500 unfavorable

C. $1,875 favorable

D. $1,875 unfavorable

Reference no: EM13150427

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