The standard costs and actual costs for factory overhead for the manufacture of 2,600 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours per unit at $0.73 per hour Variable overhead 3 hours per unit at $1.95 per hour Actual Costs Total variable cost, $17,800 Total fixed cost, $8,200 The variable factory overhead controllable variance is a. $0 Ob. $2,590 favorable Oc. $2,072 favorable Od. $2,590 unfavorable
The standard costs and actual costs for factory overhead for the manufacture of 2,600 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours per unit at $0.73 per hour Variable overhead 3 hours per unit at $1.95 per hour Actual Costs Total variable cost, $17,800 Total fixed cost, $8,200 The variable factory overhead controllable variance is a. $0 Ob. $2,590 favorable Oc. $2,072 favorable Od. $2,590 unfavorable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![The standard costs and actual costs for factory overhead for the manufacture of 2,600 units of actual production are as
follows:
Standard Costs
Fixed overhead (based on 10,000 hours) 3 hours per unit at $0.73 per hour
Variable overhead
3 hours per unit at $1.95 per hour
Actual Costs
Total variable cost, $17,800
Total fixed cost, $8,200
The variable factory overhead controllable variance is
a. $0
Ob. $2,590 favorable
Oc. $2,072 favorable
Od. $2,590 unfavorable](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4bd276e6-80d1-4a39-8b23-ef2ab7ab097e%2F9d8b4019-2d8c-4ab9-87eb-d25ac48ccc2b%2Ftqzkqvn.png&w=3840&q=75)
Transcribed Image Text:The standard costs and actual costs for factory overhead for the manufacture of 2,600 units of actual production are as
follows:
Standard Costs
Fixed overhead (based on 10,000 hours) 3 hours per unit at $0.73 per hour
Variable overhead
3 hours per unit at $1.95 per hour
Actual Costs
Total variable cost, $17,800
Total fixed cost, $8,200
The variable factory overhead controllable variance is
a. $0
Ob. $2,590 favorable
Oc. $2,072 favorable
Od. $2,590 unfavorable
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