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

question 52

Multiple Choice

The following data is given for the Walker Company: $\begin{array}{ll}1,000 \text { units } & \text { Budgeted prochuction } \\980 \text { units } & \text { Actual production }\\\$2.00& \text { Stendard price per Ib } &\\12& \text { Standard pounds per completed unit } &\\11,800& \text {Actual pounds purchased and used in production } &\\\$23,000& \text { Actual price paid for materials } &\\& \text {Labor: } \\\$ 14 \text { per hour } & \text { Standard hourly labor rate } \\4.5 & \text { Standard hours allowed per completed unit } \\4,560 & \text { Actual labor hours worked } \\\$ 62.928 & \text { Actual total labor costs }\\& \text { Overhead: } \\ \$ 27,000 & \text { Actual and budgeted fixed overhead } \\\$ 3.50 \text { per standard direct labor hour }& \text { Standard variable overhe ad rate }\\\$ 15.500&\text { Actual variable overhead costs }\end{array}$

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.