Bright Works Inc. uses a standard costing system. Below is the January overhead budget: Item Standard DLH at full capacity Variable factory overhead Fixed factory overhead Value 30,000 hrs. $60,000 $90,000 Total factory overhead per DLH $5.00 Actual for January: • Direct labor hours worked: 28,000 hrs. • Total factory overhead: $162,000 • Standard DLH for actual output: 29,000 hrs. What is the controllable (budget) variance for January?

Bright Works Inc. uses a standard costing system. Below is the January overhead budget: Item Standard DLH at full capacity Variable factory overhead Fixed factory overhead Value 30,000 hrs. $60,000 $90,000 Total factory overhead per DLH $5.00 Actual for January: • Direct labor hours worked: 28,000 hrs. • Total factory overhead: $162,000 • Standard DLH for actual output: 29,000 hrs. What is the controllable (budget) variance for January?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 8PA: Direct labor hours are estimated as 2,000 in Quarter 1; 2,100 in Quarter 2; 1,900 in Quarter 3; and...

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