Question

Bellingham Company produced 4,200 units of product that required 7 standard direct labor hours per unit. The standard variable overhead cost per unit is $2.70 per direct labor hour. The actual variable factory overhead was $77,470. Determine the variable factory overhead controllable variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Answer 1

Answer:

$1,910 unfavorable

Explanation:

The computation of the variable factory overhead controllable variance is shown below:

= Standard variable factory overhead  - Actual variable factory overhead

where,  

Standard variable factory overhead equals to

= 4,200 units ×  7 standard hours per unit × $2.70 per hour

= $79,380

And, the other items values would remain the same

Now put these values to the above formula

So, the value would be equal to

= $79,380 - $77,470

= $1,910 unfavorable