Use the Following Information for Questions

question 87

Multiple Choice

Use the following information for questions
Budgeted overhead for Cinnabar Industries at normal capacity of 30000 direct labor hours is $6 per hour variable and $4 per hour fixed. In May $310000 of overhead was incurred in working 31500 hours when 32000 standard hours were allowed.
-The overhead controllable variance is

• A) $5000 favorable.
• B) $2000 favorable.
• C) $10000 favorable.
• D) $10000 unfavorable.

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