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Eminem, Inc. manufactures music CDs. At the start of 2021, Eminem planned to produce 110,000 CDs for which the standard cost for each CD is:

Eminem, Inc. manufactures music CDs. At the start of 2021, Eminem planned to produce 110,000 CDs for which the standard cost for each CD is:

Plastic (0.25 pounds at $6.00 per pound) $1.50
Labor (0.10 hour at $12.00 per hour) 1.20
Overhead ($0.70 fixed and $0.90 variable) 1.60
Total $4.30

Overhead is allocated based on the number of units produced. Eminem isolates material purchase variances at the point of purchase. The following information summarizes Eminems results for 2021:

Actual production 112,000 CDs
Actual variable overhead $91,000
Actual fixed overhead $85,500

How much is the controllable overhead variance for 2021?

a) $4,400 favorable
b) $1,300 favorable
c) $1,600 favorable
d) $5,000 favorable
e) $1,800 favorable

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