Bellingham Company produced 1,900 units of product that required 7.5 standard hours per unit. The standard variable overhead cost per unit is $3.70 per hour. The actual variable factory overhead was $50,725. Determine the variable factory overhead controllable variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Bellingham Company produced 1,900 units of product that required 7.5 standard hours per unit. The standard variable overhead cost per unit is $3.70 per hour. The actual variable factory overhead was $50,725. Determine the variable factory overhead controllable variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Bellingham Company produced 1,900 units of product that required 7.5 standard hours per unit. The standard variable overhead cost per unit is $3.70 per hour. The actual variable factory overhead was $50,725. Determine the variable factory overhead controllable variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Transcribed Image Text:**Factory Overhead Controllable Variance**
Bellingham Company produced 1,900 units of product that required 7.5 standard hours per unit. The standard variable overhead cost per unit is $3.70 per hour. The actual variable factory overhead was $50,725. Determine the variable factory overhead controllable variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.
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