Yourtube Company uses a standard cost system and prepared the following budget at normal capacity for the month of January. Direct labor hours Variable factory overhead Fixed factory overhead Total factory overhead per DLH Actual data for January were as follows: Direct labor hours worked Total factory overhead 24,000 $48,000 $108,000 $6.50 22,000 $147,000 Standard DLH allowed for the capacity attained 21,000 Using the two-way analysis of overhead variances, what is the budget (controllable) variance for January? A. $3,000. B. $13,500 unfavorable. C. $9,000 favorable. D. $10,500 unfavorable.
Yourtube Company uses a standard cost system and prepared the following budget at normal capacity for the month of January. Direct labor hours Variable factory overhead Fixed factory overhead Total factory overhead per DLH Actual data for January were as follows: Direct labor hours worked Total factory overhead 24,000 $48,000 $108,000 $6.50 22,000 $147,000 Standard DLH allowed for the capacity attained 21,000 Using the two-way analysis of overhead variances, what is the budget (controllable) variance for January? A. $3,000. B. $13,500 unfavorable. C. $9,000 favorable. D. $10,500 unfavorable.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Yourtube Company uses a standard cost system and prepared the
following budget at normal capacity for the month of January.
Direct labor hours
Variable factory overhead
Fixed factory overhead
Total factory overhead per DLH
Actual data for January were as follows:
Direct labor hours worked
Total factory overhead
24,000
$48,000
$108,000
$6.50
22,000
$147,000
Standard DLH allowed for the capacity attained 21,000
Using the two-way analysis of overhead variances, what is the budget
(controllable) variance for January?
A. $3,000.
B. $13,500 unfavorable.
C. $9,000 favorable.
D. $10,500 unfavorable.
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