Munro Company applies overhead to products based on direct labor hours. Manufacturing overhead at the...
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Accounting
Munro Company applies overhead to products based on direct labor hours. Manufacturing overhead at the expected normal level of activity is $30,000 per month plus $3 per direct labor hour. During June, actual manufacturing overhead costs amounted to $51,000 when 6,100 actual direct labor hours were worked. The standard number of direct labor hours that should have been worked for the output achieved was 6,000 direct labor hours. The overhead controllable variance for June was:
a.
3,000 unfavorable
b.
$2,700 unfavorable
c.
$2,040 favorable
d.
$3,000 favorable
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