1 answer

The answer is not $4,000 nor $5,000. Please help. Question 3 0.5/1 View Policies Show Attempt...

Question:

The answer is not $4,000 nor $5,000. Please help.
Question 3 0.5/1 View Policies Show Attempt History Current Attempt in Progress - Your answer is partially correct. Mikan Com
Question 3 0.5/1 View Policies Show Attempt History Current Attempt in Progress - Your answer is partially correct. Mikan Company's standard predetermined overhead rate is $9 per direct labor hour. For the month of June, 26,000 actual hours were worked and 27.000 standard hours were allowed. If the $9 per hour overhead rate includes $5 variable, and actual overhead costs were $248,000, what is the overhead controllable variance for June? The normal capacity hours were 28,000. Is the variance favorable or unfavorable? Overhead controllable variance $ 5000 Unfavorable

Answers

Solution:

Overhead controllable variance = Budgeted overhead for actual production - Actual overhead

=(27000*$5 + 28000*$4) - $248,000

= $1,000 Unfavorable

.

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