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The following data are given for Bahia Company:
Budgeted production | 1,077 units |
Actual production | 936 units |
Materials: | |
Standard price per pound | $1.862 |
Standard pounds per completed unit | 10 |
Actual pounds purchased and used in production | 9,079 |
Actual price paid for materials | $18,612 |
Labor: | |
Standard hourly labor rate | $14.89 per hour |
Standard hours allowed per completed unit | 4.0 |
Actual labor hours worked | 4,820.4 |
Actual total labor costs | $73,511 |
Overhead: | |
Actual and budgeted fixed overhead | $1,078,000 |
Standard variable overhead rate | $26.00 per standard labor hour |
Actual variable overhead costs | $134,971 |
Overhead is applied on standard labor hours. |
The variable factory overhead controllable variance is
a.$141,130.92 unfavorable
b.$141,130.92 favorable
c.$37,627.00 unfavorable
d.$37,627.00 favorable
Answer & Explanation
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