9

The standard costs and actual costs for factory overhead for the manufacture of 2,600 units of actual production are as follows:

Standard Costs
Fixed overhead (based on 10,000 hours)	3 hours per unit @ $0.72 per hour
Variable overhead	3 hours per unit @ $1.99 per hour
Actual Costs
Total variable cost, $18,100
Total fixed cost, $8,000

The variable factory overhead controllable variance is

a.$0

b.$2,062 favorable

c.$2,578 favorable

d.$2,578 unfavorable