Reference no: EM132972453

Question - Steep, Inc. budgeted 6,000 cup holders for March. Each holder is sold for $12. Actual production for March was 6,300 cup holders. Manufacturing overhead is applied based on units produced. Standards and actual costs follow for March:

Standards Actual

Materials 1.1 pounds @ $2.40 a pound 6,400 pounds purchased for $15,040; 6,450 pounds used

Labor 0.10 hours @ $14.00 per hour 620 hours @ $14.30 per hour

Variable overhead $16,800 $18,400

Fixed overhead $6,900 $10,300

Required - How much is the controllable overhead variance?

a) $1,460 unfavorable

b) $4,160 unfavorable

c) $2,300 unfavorable

d) $980 favorable

e) $480 favorable