Accounting -In October, Glazier Inc. reports 42,000 actual direct labor hours

| January 30, 2017

Question
In October, Glazier Inc. reports 42,000 actual direct labor hours, and it incurs $194,000 of manufacturing overhead costs. Standard hours allowed for the work done is 40,000 hours. The flexible manufacturing overhead budget shows that budgeted costs are $3.80 variable per direct labor hour and $60,000 fixed.

Compute the manufacturing overhead controllable variance. Identify whether the variance is favorable or unfavorable?

Total manufacturing overhead controllable variance

$

Not ApplicableFavorableUnfavorable

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