Budgeted production 1,075 units

Actual production 920 units

Materials:

Standard price per pound $1.874

Standard pounds per completed unit 12

Actual pounds purchased and used in production 10,709

Actual price paid for materials $21,953

Labor:

Standard hourly labor rate $15.00 per hour

Standard hours allowed per completed unit 4.7

Actual labor hours worked 4,738

Actual total labor costs $72,255

Overhead:

Actual and budgeted fixed overhead $1,120,000

Standard variable overhead rate $26.00 per standard labor hour

Actual variable overhead costs $132,664

Overhead is applied on standard labor hours.

The variable factory overhead controllable variance is

a. $161,488.37 unfavorable

b. $161,488.37 favorable

c. $20,240.00 unfavorable

d. $20,240.00 favorable