Frogue Corporation uses a standard cost system. The following information was provided for the period that just ended:
Actual price per kilogram ..................................................................................$3.00
Actual kilograms of material used .................................................................$31,000
Actual hourly labor rate ...................................................................................$18.10
Actual hours of production ............................................................4,900 labor hours
Standard price per kilogram ..............................................................................$2.80
Standard kilograms per completed unit ...................................................6 kilograms
Standard hourly labor rate ..............................................................................$18.00
Standard time per completed unit .......................................................................1 hr
Actual total factory overhead .......................................................................$34,900
Fixed factory overhead .................................................................................$18,000
Standard fixed factory overhead rate ........................................$1.20 per labor hour
Standard variable factory overhead rate ....................................$3.80 per labor hour
Maximum plant capacity .......................................................................15,000 hours
Plant operated during the period.............................................................10,000 hours
Units completed during the period .....................................................................5,000
The variable factory overhead controllable variance is:
a. $6,000 favorable
b. $2,100 favorable
c. $2,100 unfavorable
d. $6,000 unfavorable