Reference no: EM133010454

The following information is available from the Terry Company:

Actual total factory overhead cost incurred $ 25,000
Actual fixed overhead cost incurred $ 10,400
Budgeted fixed overhead expenses $ 11,000
Actual direct labor hours (DLH) worked 4,400
Standard DLHs for this period's production (output) 4,000
Standard variable overhead rate per DLH $ 3.00
Standard fixed overhead rate per DLH $ 2.50

Problem 1: The total overhead flexible budget (FB) variance for the period is:

Option 1: $2,600 unfavorable.

Option 2: $1,400 unfavorable.

Option 3: $3,000 unfavorable.

Option 4: $2,000 unfavorable.

Option 5: $800 unfavorable.