Question: Some overhead data for Roby Company are given in BE11-6. In addition, the flexible manufacturing overhead budget shows that budgeted costs are $4 variable per

Some overhead data for Roby Company are given in BE11-6. In addition, the flexible manufacturing overhead budget shows that budgeted costs are $4 variable per direct labor hour and $50,000 fixed. Compute the overhead controllable variance.


Data From BE11-6

In October, Roby Company reports 21,000 actual direct labor hours, and it incurs $118,000 of manufacturing overhead costs. Standard hours allowed for the work done is 20,400 hours. The predetermined overhead rate is $6 per direct labor hour. Compute the total overhead variance.


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