In october, blossom company reports 19,100 actual direct labor hours, and it incurs $167,200 of manufacturing overhead costs. standard hours allowed for the work done is 20,900 hours. the predetermined overhead rate is $8.10 per direct labor hour. in addition, the flexible manufacturing overhead budget shows that budgeted costs are $6.40 variable per direct labor hour and $47,400 fixed. compute the overhead controllable variance.

overhead controllable variance =  13960 F

Explanation:

given data

actual direct labor hours = 19,100

manufacturing overhead costs = $167,200

work done = 20,900 hours

overhead rate = $8.10

budgeted costs variable = $6.40

budgeted costs fixed = $47,400

to find out

overhead controllable variance

solution

we get here overhead controllable variance as      

overhead controllable variance = Actual overhead - Budgeted overhead   1

Budgeted overhead is = work done × Budgeted variable + Budgeted fixed

Budgeted overhead is = 20,900 × 6.40 + 47,400

Budgeted overhead is = 181160

put here value we get

overhead controllable variance = $167,200 - 181160

overhead controllable variance =  13960 F

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