Luther Manufacturing Company Uses a Standard Cost System and Prepared

question 34

Multiple Choice

Luther Manufacturing Company uses a standard cost system and prepared the following budget at normal capacity for October: $\begin{array}{ll}\text { Direct labor hours } & 24,000 \\\text { Variable OH } & \$ 48,000 \\\text { Fixed OH } & \$ 108,000 \\\text { Total OH per DLH } & \$ 6.50\\\\\textbf { Actual data for October were as follows: }\\\text { Direct labor houss worked } & 22,000 \\\text { Total OH } & \$ 147,000 \\\text { Standard DLHs allowed for capacity attained } & 21,000\end{array}$ Using the two-way analysis of overhead variances,what is the controllable variance for October?

• A)$3,000 F
• B)$5,000 F
• C)$9,000 F
• D)$10,500 U