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What the controllable variance of beacon company is

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Reference no: EM132802551

Beacon Company manufactures various types of plastic and rubber coated tubing products for various industries. Standard cost accounting system is used. The following are available:

Actual total overhead                                                            $44,000
Budgeted fixed costs                                                           $12,600
Total overhead application rate per standard direct labor hour      $2.50
Actual hours used                                                                16,000
Standard hours allowed                                                        17,000
Normal activity in hours                                                            14,000

Problem 1: The company uses a two-way analysis of overhead variances. The controllable variance of Beacon Company is

Choices:

option 1: $1,500 favorable

option 2: $1,500 unfavorable

option 3: $4,200 unfavorable

option 4: $4,200 favorable

Reference no: EM132802551

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