Haley Fans Manufactures and Distributes Circulators Budgeted Factory Overhead Was $32,000

question 133

Multiple Choice

Haley Fans manufactures and distributes circulators.The standard and actual costs for the manufacture of circulators are as follows: $\begin{array}{|l|l|}\hline {\text { Standard Costs }} &{\text { Actual Costs }} \\\hline \text { Variable cost, } \$ 24 \text { per unit } & \text { Total variable cost, } \$ 12,300 \\\hline \text { Fixed cost, } \$ 40 \text { per unit } & \text { Total fixed cost, } \$ 19,250 \\\hline\end{array}$ Budgeted factory overhead was $32,000.Overhead applied is based on the number of circulator units produced.The company estimated that 500 circulators would be produced, however only 480 were produced.How much is Haley's controllable overhead variance?

• A)$800 unfavorable
• B)$830 favorable
• C)$450 favorable
• D)$30 unfavorable

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Definitions:

Master Budgets

A comprehensive financial planning document that consolidates all of a company's budgets, serving as a financial roadmap.

Fiscal Year

A 12-month period used for accounting and financial reporting purposes, which may not align with the calendar year.

Quarterly Income Statement

A financial report that displays a company's revenues, expenses, and net income over a three-month period.

Reportable Segments

Operational parts of a company with distinguishable financial information that is reported separately.