   Chapter 23, Problem 23.3BPE

Chapter
Section
Textbook Problem

Factory overhead controllable variance Dvorak Company produced 1,000 units of product that required 3 standard hours per unit. The standard variable overhead cast per unit is $1.40 per hour. The actual variable factory overhead was$4,000. Determine the variable factory overhead controllable variance.

To determine

Variable factory overhead controllable variances:

The difference between the actual variable overhead costs, and the standard variable overhead costs for actual production is known as the variable factory overhead controllable variances. The variable factory overhead controllable variance is computed as follows:

Variable factory overheadcontrollable variance}(Actual variable factory overheadStandard variable factory overhead )

To determine: The variable factory overhead controllable variance.

Explanation

Determine the variable factory overhead controllable variance.

Variable factory overheadcontrollable variance}(Actual variable factory overheadStandard variable factory overhead )

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