Yourtube Company uses a standard cost system and prepared the following budget at normal capacity for the month of January. Direct labor hours Variable factory overhead Fixed factory overhead Total factory overhead per DLH 24,000 $48,000 $108,000 $6.50 Actual data for January were as follows: 22,000 Total factory overhead $147,000 Direct labor hours worked Standard DLH allowed for the capacity attained 21,000 Using the two-way analysis of overhead variances, what is the budget (controllable) variance for January? A. $3,000. B. $13,500 unfavorable. C. $9,000 favorable. D. $10,500 unfavorable.
Yourtube Company uses a standard cost system and prepared the following budget at normal capacity for the month of January. Direct labor hours Variable factory overhead Fixed factory overhead Total factory overhead per DLH 24,000 $48,000 $108,000 $6.50 Actual data for January were as follows: 22,000 Total factory overhead $147,000 Direct labor hours worked Standard DLH allowed for the capacity attained 21,000 Using the two-way analysis of overhead variances, what is the budget (controllable) variance for January? A. $3,000. B. $13,500 unfavorable. C. $9,000 favorable. D. $10,500 unfavorable.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Yourtube Company uses a standard cost system and prepared the
following budget at normal capacity for the month of January.
Direct labor hours
Variable factory overhead
Fixed factory overhead
Total factory overhead per DLH
24,000
$48,000
$108,000
$6.50
Actual data for January were as follows:
22,000
Total factory overhead
$147,000
Direct labor hours worked
Standard DLH allowed for the capacity attained 21,000
Using the two-way analysis of overhead variances, what is the budget
(controllable) variance for January?
A. $3,000.
B. $13,500 unfavorable.
C. $9,000 favorable.
D. $10,500 unfavorable.
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