In October, Glazier Inc. reports 42,000 actual direct labor hours, and it incurs $194,000 of manufacturing overhead costs. Standard hours allowed for the work done is 40,000 hours. The flexible manufacturing overhead budget shows that budgeted costs are $3.80 variable per direct labor hour and $60,000 fixed.

Compute the manufacturing overhead controllable variance. Identify whether the variance is favorable or unfavorable?

Total manufacturing overhead controllable variance

$

Not ApplicableFavorableUnfavorable