Tucker Company produced 8,900 units of product that required 3.25 standard hours per unit. The standard variable overhead cost per unit is $4.00 per hour. The actual variable factory overhead was $111,000. Enter favorable variances as negative numbers. Determine the variable factory overhead controllable variance.

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Business

Mckinney

2 December, 08:08

Tucker Company produced 8,900 units of product that required 3.25 standard hours per unit. The standard variable overhead cost per unit is $4.00 per hour. The actual variable factory overhead was $111,000. Enter favorable variances as negative numbers. Determine the variable factory overhead controllable variance.

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Answers (1)

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Alyssa Travis · Answer 1

Variable factory overhead controllable variance = $4,700 favorable

Explanation:

given data

produced = 8,900 units

product required = 3.25 standard hours per unit

overhead cost = $4.00 per hour

actual variable factory overhead = $111,000

to find out

variable factory overhead controllable variance

solution

we will apply here Variable factory overhead controllable variance formula that is express as

Variable factory overhead controllable variance = produced * product required * overhead cost - actual variable factory overhead ... 1

put here value we get

Variable factory overhead controllable variance = (8900 * 3.25 * $4) - $111000

Variable factory overhead controllable variance = $4,700 favorable