Venneman Company produced 14,000 units of product that required 4 standard hours per unit. The standard variable overhead cost per unit is $0.80 per hour. The actual variable factory overhead was $46,100. Determine the variable factory overhead controllable variance.

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Chapter1: Financial Statements And Business Decisions
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Venneman Company produced 14,000 units of product that required 4 standard hours per unit. The standard variable overhead cost per unit is $0.80 per hour. The actual variable factory overhead was $46,100. 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.
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Variable factory overhead controllable variance 

Standard variable overhead - Actual variable overhead 

    = (14,000 units ×4 hours× $0.80 ) - $46,100

 

   

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