Sunday, September 22, 2019

Dvorak Company produced 1,000 units of product that required three standard hours per unit. The standard variable overhead cost per unit

Dvorak Company produced 1,000 units of product that required three standard hours per unit. The standard variable overhead cost per unit is $1.40 per hour. The actual variable factory overhead was $4,000. Determine the variable factory overhead controllable variance.

Answer:








Variable Factory Overhead 
Controllable Variance  = 

Variable Factory Overhead 
$4,000 – [$1.40 × (1,000 units × 3.0 hrs.)] 
Controllable Variance  =  $4,000 – $4,200 
Variable Factory Overhead 
Controllable Variance  = –$200 Favorable 

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