The amount of the factory overhead controllable variance

Reference no: EM13189351

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:
Answer

A.$2,000 unfavorable

B.$3,000 favorable

C.$0

D.$3,000 unfavorable

Reference no: EM13189351

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