Frogue Corporation uses a standard cost system. The following information was pr

Question

Frogue Corporation uses a standard cost system. The following information was provided for the period that just ended:

Actual price per kilogram $3.00

Actual kilograms of material used 31,000

Actual hourly labor rate $18.10

Actual hours of production 4,900 labor hours

Standard price per kilogram $2.80

Standard kilograms per completed unit 6 kilograms

Standard hourly labor rate $18.00

Standard time per completed unit 1 hr.

Actual total factory overhead $34,900

Fixed factory overhead $18,000

Standard fixed factory overhead rate $1.20 per labor hour

Standard variable factory overhead rate $3.80 per labor hour

Maximum plant capacity 15,000 hours

Plant operated during the period 10,000 hours

Units completed during the period 5,000


The variable factory overhead controllable variance is:

a. $6,000 favorable
b. $2,100 favorable
c. $2,100 unfavorable
d. $6,000 unfavorable

Explanation / Answer

b. $2,100 favorable

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