The standard costs and actual costs for factory overhead for the manufacture of 2,800 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours per unit @ $0.78 per hour Variable overhead 3 hours per unit @ $1.91 per hour Actual Costs Total variable cost, $17,800 Total fixed cost, $8,100 The variable factory overhead controllable variance is a.$1,756 favorable b.$1,756 unfavorable

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The standard costs and actual costs for factory overhead for the manufacture of 2,800 units of actual production are as
follows:
Standard Costs
Fixed overhead (based on 10,000 hours) 3 hours per unit @ $0.78 per hour
Variable overhead
3 hours per unit @ $1.91 per hour
Actual Costs
Total variable cost, $17,800
Total fixed cost, $8,100
The variable factory overhead controllable variance is
a.$1,756 favorable
b.$1,756 unfavorable
c.$1,405 favorable
d.$0
Transcribed Image Text:The standard costs and actual costs for factory overhead for the manufacture of 2,800 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours per unit @ $0.78 per hour Variable overhead 3 hours per unit @ $1.91 per hour Actual Costs Total variable cost, $17,800 Total fixed cost, $8,100 The variable factory overhead controllable variance is a.$1,756 favorable b.$1,756 unfavorable c.$1,405 favorable d.$0
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