The Following Data Is Given for the Walker Company Overhead Is Applied on Standard Labor Hours

question 19

Multiple Choice

The following data is given for the Walker Company: $$\begin{array} { l l } \text { Budgeted production } & 1,000 \text { units } \\\text { Actual production } & 980 \text { units } \\\text { Materials: } & \\\text { Standard price per lb } & \$ 2.00 \\\text { Standard pounds per completed unit } & 12 \\\text { Actual pounds purchased and used in production } & 11,800 \\\text { Actual price paid for materials } & \$ 23,000 \\\text { Labor: } & \\\text { Standard hourly labor rate } & \$ 14 \text { per hour } \\\text { Standard hours allowed per completed unit } & 4.5 \\\text { Actual labor hours worked } & 4,560 \\\text { Actual total labor costs } & \$ 62,928 \\\text { Overhead: } & \$ 27,000 \\\text { Actual and budgeted fixed overhead } & \$ 3.50 \text { per standard direct labor hour } \\\text { Standard variable overhead rate } & \$ 15,500\end{array}$$ Overhead is applied on standard labor hours. The variable factory overhead controllable variance is:

• A) $65 unfavorable.
• B) $65 favorable.
• C) $250 unfavorable.
• D) $250 favorable.

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