Question

Jordan Industries produced 6,000 units of product that required 1.5 standard hours per unit. The standard variable overhead cost per unit is $2.75 per hour. The actual variable factory overhead was $29,000. Determine the variable factory overhead controllable variance.

Answer 1

Answer:

$4,250 unfavorable

Explanation:

For the computation of variable factory overhead controllable variance first we need to determine the standard variable factory overhead which is shown below:-

Standard variable factory overhead is

= 6,000 units ×  1.5 standard hours per unit × $2.75 per hour

= $24,750

Variable factory overhead controllable variance = Actual variable factory overhead - standard variable factory overhead

= $29,000 - $24,750

= $4,250 unfavorable

Therefore we applied the above formula.