Budgeted overhead for Sunland Company at the normal capacity of 30,000 direct labor hours is $6 per hour variable and $4 per hour fixed. In May, $302,400 of overhead was incurred in working 31,500 hours when 32,000 standard hours were allowed. The overhead controllable variance is: a. $5,000 favorable b. $17,600 favorable c. $9,600 favorable d. $17,600 unfavorable

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 16E: Determining Budgeted Overhead The overhead application rate for a company is 10 per unit, made up of...
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Budgeted overhead for Sunland Company at the normal capacity of
30,000 direct labor hours is $6 per hour variable and $4 per hour
fixed. In May, $302,400 of overhead was incurred in working 31,500
hours when 32,000 standard hours were allowed.
The overhead controllable variance is:
a. $5,000 favorable
b. $17,600 favorable
c. $9,600 favorable
d. $17,600 unfavorable
Transcribed Image Text:Budgeted overhead for Sunland Company at the normal capacity of 30,000 direct labor hours is $6 per hour variable and $4 per hour fixed. In May, $302,400 of overhead was incurred in working 31,500 hours when 32,000 standard hours were allowed. The overhead controllable variance is: a. $5,000 favorable b. $17,600 favorable c. $9,600 favorable d. $17,600 unfavorable
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