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Question - Steep, Inc. budgeted 6,000 cup holders for March. Each holder is sold for $12. Actual production for March was 6,300 cup holders. Manufacturing overhead is applied based on units produced. Standards and actual costs follow for March:
Standards Actual
Materials 1.1 pounds @ $2.40 a pound 6,400 pounds purchased for $15,040; 6,450 pounds used
Labor 0.10 hours @ $14.00 per hour 620 hours @ $14.30 per hour
Variable overhead $16,800 $18,400
Fixed overhead $6,900 $10,300
Required - How much is the controllable overhead variance?
a) $1,460 unfavorable
b) $4,160 unfavorable
c) $2,300 unfavorable
d) $980 favorable
e) $480 favorable
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