Reference no: EM132802551
Beacon Company manufactures various types of plastic and rubber coated tubing products for various industries. Standard cost accounting system is used. The following are available:
Actual total overhead $44,000
Budgeted fixed costs $12,600
Total overhead application rate per standard direct labor hour $2.50
Actual hours used 16,000
Standard hours allowed 17,000
Normal activity in hours 14,000
Problem 1: The company uses a two-way analysis of overhead variances. The controllable variance of Beacon Company is
Choices:
option 1: $1,500 favorable
option 2: $1,500 unfavorable
option 3: $4,200 unfavorable
option 4: $4,200 favorable