What is the controllable variance

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Madonna Company uses a standard cost system for its production process. Madonna Company applies overhead based on direct labor hours. The following information is available for July:

Standard:

Direct labor hours per unit = 2.20

Variable overhead per hour = Php2.50

Fixed overhead per hour (based on 11,990 DLHs) = Php3.00

Actual:

Units produced = 4,400

Direct labor hours = 8,800

Variable overhead = Php29,950

Fixed overhead = Php42,300

Problem 1: Using the two-variance approach, what is the controllable variance?

a. Php21,650 U

b. Php16,480 U

c. Php5,775 U

d. Php12,080 U

Reference no: EM132893420

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