Yourtube Company uses a standard cost system and prepared the following budget at normal capacity for the month of January.
Yourtube Company uses a standard cost system and prepared the following budget at normal capacity for the month of
January.
| Direct labor hours | 24,000 |
| Variable factory overhead | $ 48,000 |
| Fixed factory overhead | $108,000 |
| Total factory overhead per DLH | $6.50 |
| Actual data for January were as follows: | |
| Direct labor hours worked | 22,000 |
| Total factory overhead | $147,000 |
| 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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