What variable factory overhead controllable variance is

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The standard costs and actual costs for factory overhead for the manufacture of 2,600 units of actual production are as follows:

Standard Costs

Fixed overhead (based on 10,000 hours) 3 hours per unit at $0.75 per hour
Variable overhead 3 hours per unit at $1.98 per hour

Actual Costs

Total variable cost, $18,100 Total fixed cost, $7,800

problem 1: The variable factory overhead controllable variance is

a. $2,656 favorable
b. $2,656 unfavorable
c. $0
d. $2,125 favorable

Reference no: EM132805877

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