4. JoyT Company manufactures Maxi Dolls for sale in toy stores. In planning for this year, JoyT estimated variable factory overhead of $600,000 and fixed factory overhead of $400,000. JoyT uses a standard costing system, and factory overhead is allocated to units produced using standard direct labor hours. The level of activity budgeted for this year was 10,000 direct labor hours, and JoyT used 10,300 actual direct labor hours. Based on the output accomplished during this year, 9,900 standard direct labor hours should have been used. Actual variable factory overhead was $596,000, and actual fixed factory over- head was $410,000 for the year. Based on this information, the variable factory overhead controllable variance for JoyT for this year was: a. $24,000 unfavorable. b. $2,000 unfavorable. c. $4,000 favorable. d. $22,000 favorable.

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Chapter1: Financial Statements And Business Decisions
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4. JoyT Company manufactures Maxi Dolls for sale in toy stores. In planning for this year, JoyT
estimated variable factory overhead of $600,000 and fixed factory overhead of $400,000. JoyT
uses a standard costing system, and factory overhead is allocated to units produced using
standard direct labor hours. The level of activity budgeted for this year was 10,000 direct labor
hours, and JoyT used 10,300 actual direct labor hours.
Based on the output accomplished during this year, 9,900 standard direct labor hours should
have been used. Actual variable factory overhead was $596,000, and actual fixed factory over-
head was $410,000 for the year. Based on this information, the variable factory overhead
controllable variance for JoyT for this year was:
a. $24,000 unfavorable.
b. $2,000 unfavorable.
c. $4,000 favorable.
d. $22,000 favorable.
Transcribed Image Text:4. JoyT Company manufactures Maxi Dolls for sale in toy stores. In planning for this year, JoyT estimated variable factory overhead of $600,000 and fixed factory overhead of $400,000. JoyT uses a standard costing system, and factory overhead is allocated to units produced using standard direct labor hours. The level of activity budgeted for this year was 10,000 direct labor hours, and JoyT used 10,300 actual direct labor hours. Based on the output accomplished during this year, 9,900 standard direct labor hours should have been used. Actual variable factory overhead was $596,000, and actual fixed factory over- head was $410,000 for the year. Based on this information, the variable factory overhead controllable variance for JoyT for this year was: a. $24,000 unfavorable. b. $2,000 unfavorable. c. $4,000 favorable. d. $22,000 favorable.
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