Reference no: EM131663529
Question - Yourtube Company uses a standard cost system and prepared the following budget at normal capacity for the month of January.
Direct labor hours 24,000
Variable factory overhead $ 48,000
Fixed factory overhead $108,000
Total factory overhead per DLH $6.50
Actual data for January were as follows:
Direct labor hours worked 22,000
Total factory overhead $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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