Bellingham Company produced 6,900 units of product that required
6.5 standard hours per unit. The standard variable overhead cost
per unit is $5.90 per hour. The actual variable factory overhead
was $260,645. Determine the variable factory overhead controllable
variance. Enter a favorable variance as a negative number using a
minus sign and an unfavorable variance as a positive number.
Homework Answers
Variable factory overhead controllable variance = standard variable factory overhead - actual variable factory overhead
= (6900 x 6.5 x $5.90) - $260645
= $264615 - $260645
= -$3970 Favorable
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