Elgin Company's Budgeted Fixed Factory Overhead Costs Are $50,000 Per

question 70

Multiple Choice

Elgin Company's budgeted fixed factory overhead costs are $50,000 per month plus a variable factory overhead rate of $4.00 per direct labor hour. The standard direct labor hours allowed for October production were 20,000. An analysis of the factory overhead indicates that in October Elgin had an unfavorable controllable variance of $1,500 and a favorable volume variance of $500. Elgin uses a two-variance analysis of overhead variances. The actual factory overhead incurred in October is:

• A)$126,500.
• B)$128,000.
• C)$128,500.
• D)$131,500.

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