Problem
The following data is given for the Bahia Company:
|
Budgeted production
|
1,000 units
|
|
Actual production
|
903 units
|
|
Materials:
|
|
|
Standard price per pound
|
$1.8
|
|
Standard pounds per completed unit
|
11
|
|
Actual pounds purchased and used in production
|
9,635
|
|
Actual cost of materials
|
$19,752
|
|
Labor:
|
|
|
Standard hourly labor rate
|
$14.00 per hour
|
|
Standard hours allowed per completed unit
|
5.0
|
|
Actual labor hours worked
|
4,650.45
|
|
Actual total labor costs
|
$70,919
|
|
Overhead:
|
|
|
Actual and budgeted fixed overhead
|
$1,064,925
|
|
Standard variable overhead rate
|
$26.00 per standard labor hour
|
|
Actual variable overhead costs
|
$130,213
|
Overhead is applied on standard labor hours.
Determine the amount of the variable factory overhead controllable variance.
$103,298 U
$116,121 U
$12,823 U
$2,409 U.