Question Content Area

The following data are given for Bahia Company:

Line Item Description Value

Budgeted production $1,007$ units

Actual production $913$ units

Materials:

Standard price per pound $$1\mathrm{.}79$

Standard pounds per completed unit $12$

Actual pounds purchased and used in production $10,627$

Actual price paid for materials $$21,785$

Labor:

Standard hourly labor rate $$14\mathrm{.}09$ per hour

Standard hours allowed per completed unit $4\mathrm{.}9$

Actual labor hours worked $4,701\mathrm{.}95$

Actual total labor costs $$71,705$

Overhead:

Actual and budgeted fixed overhead $$1,154,000$

Standard variable overhead rate $$25\mathrm{.}00$ per standard labor hour

Actual variable overhead costs $$131,655$

Overhead is applied on standard labor hours.

The variable factory overhead controllable variance is

a$.$ $$107,721\mathrm{.}95$ unfavorable

b$.$ $$107,721\mathrm{.}95$ favorable

c$.$ $$19,812\mathrm{.}50$ unfavorable

d$.$ $$19,812\mathrm{.}50$ favorable