The following data is given for the Bahia Company Budgeted production Actual pro

Question

The following data is given for the Bahia Company Budgeted production Actual production Materials: 1,087 units 924 units Standard price per pound Standard pounds per completed unit Actual pounds purchased and used in production Actual price paid for materials $1.861 9,859 $20,211 Labor: Standard hourly labor rate Standard hours allowed per completed unit Actual labor hours worked Actual total labor costs $14.91 per hour 4.9 4,758.6 $72,569 $1,056,000 $27.00 per standard labor hour $133,241 Actual and budgeted fixed overhead Standard variable overhead rate Actual variable overhead costs Overhead is applied on standard labor hours. The variable factory overhead controllable variance is Oa. $158,351.43 unfavorable Ob. $158,351.43 favorable Oc. $10,995.80 unfavorable Od. $10,995.80 favorable Previous Next Email Instructor Submit Test for Grading All work saved. 6:37 PM 7/2/2018 ^

Explanation / Answer

Standard hours allowed = Actual Production*Standard hours per completed unit = 924*4.9 = 4,527.6 hours

Variable Factory Overhead Controllable Variance = Actual Variable Factory Overhead - Budgeted Allowance Based on Standard Hours Allowed = 133241 - (27*4527.6) = $10,995.80 Unfavorable, Option C.

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