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Tucker Company produced 8,900 units of product that required 3.25 standard hours per unit. The standard variable overhead cost per unit is $4.00 per hour. The actual variable factory overhead was $111,000. Enter favorable variances as negative numbers. Determine the variable factory overhead controllable variance.

Respuesta :

Answer:

Variable factory overhead controllable variance =  $4,700 favorable

Explanation:

given data

produced = 8,900 units

product required = 3.25 standard hours per unit

overhead cost = $4.00 per hour

actual variable factory overhead = $111,000

to find out

variable factory overhead controllable variance

solution

we will apply here  Variable factory overhead controllable variance formula that is express as

Variable factory overhead controllable variance = produced  × product required × overhead cost - actual variable factory overhead     ...................1

put here value we get

Variable factory overhead controllable variance = ( 8900 × 3.25 × $4 ) - $111000

Variable factory overhead controllable variance =  $4,700 favorable

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