The following data is given for the Bahia Company: Budgeted production 1,000 units Actual production 980 units Materials: Standard price per pound $2.00 Standard pounds per completed unit 12 Actual pounds purchased and used in production 11,800 Actual price paid for materials $23,000 Labor: Standard hourly labor rate $14 per hour Standard hours allowed per completed unit 4.5 Actual labor hours worked 4,560 Actual total labor costs $62,928 Overhead: Actual and budgeted fixed overhead $27,000 Standard variable overhead rate $3.50 per standard direct labor hour Actual variable overhead costs $15,500 Overhead is applied on standard labor hours. The factory overhead controllable variance is:

Question

Ozzie

Business

12 May, 23:58

The following data is given for the Bahia Company: Budgeted production 1,000 units Actual production 980 units Materials: Standard price per pound $2.00 Standard pounds per completed unit 12 Actual pounds purchased and used in production 11,800 Actual price paid for materials $23,000 Labor: Standard hourly labor rate $14 per hour Standard hours allowed per completed unit 4.5 Actual labor hours worked 4,560 Actual total labor costs $62,928 Overhead: Actual and budgeted fixed overhead $27,000 Standard variable overhead rate $3.50 per standard direct labor hour Actual variable overhead costs $15,500 Overhead is applied on standard labor hours. The factory overhead controllable variance is:

+1

Answers (1)

Know the Answer?

Alfonso Diaz · Answer 1

Variance 250 favorable

Explanation:

standard rate x standard units - actual overhead

standard variable $3.50 per direct labor

4.5 labor per unit

15.75 per unit

budgeted units 1000

$15.75 x 1,000 units = 15,750 budgeted variable overhead

15,500 actual overhead

Variance 250 favorable