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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 hourVariable 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 favorableb. $2,656 unfavorablec. $0d. $2,125 favorable
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