Use This Information to Answer the Questions That Follow

question 66

Multiple Choice

Use this information to answer the questions that follow.
​
The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead) based on 100% of normal capacity of 30,000 direct labor hours. The standard cost and the actual cost of factory overhead for the production of 5,000 units during May were as follows:
​​

-What is the variable factory overhead controllable variance?

• A) $10,000 favorable
• B) $2,500 unfavorable
• C) $10,000 unfavorable
• D) $2,500 favorable

---

Definitions:

Sternum

Breastbone.

Olecranon Process

Process on the distal end of the ulna, forming the point of the elbow.

Elbow

The joint connecting the forearm to the upper arm, allowing for the flexion and extension of the forearm.

Olecranon Fossa

A large, shallow depression on the posterior side of the humerus, accommodating the olecranon of the ulna during arm extension.