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In October, Marigold Inc. reports 42,800 actual direct labor hours and incurs $210,000 of manufacturing overhead costs. Standard
hours allowed for the month's production is 42,300 hours. Marigold's predetermined overhead rate is $5.00 per direct labor hour.
The flexible manufacturing overhead budget shows that budgeted costs are $3.80 variable per direct labor hour and $68,000 fixed.
Compute the manufacturing overhead controllable variance. Identify whether the variance is favorable or unfavorable.
Total manufacturing overhead controllable variance
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