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The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhad and $1.30 for fixed overhead) based on 100% capacity of 80,000 machine hours. The standard cost and the actual cost of factory overhead for the production of 15,000 units during August were as follows:
Actual Variable Factory Overhead: $360,000
fixed factory overhead 104,000
Standard hours allowed for units produced: 60,000 hours
what is the amount of the factory overhead controllable variance?
a. $12,000 unfavorable
b. $12,000 favorable
c. $14,000 unfavorable
d. $26,000 unfavorable
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