Question:

The data below related to the month of May for Sosa Inc. which uses a standard cost system and two-variance analysis of overhead:

Actual total direct labor............................................................ $43,400

Actual hours used..................................................................... 14,000

Standard hours allowed for good output................................... 15,000

Direct labor rate variancedebit.............................................. $1,400

Actual total overhead................................................................ $40,250

Budgeted fixed costs................................................................ $9,000

Normal activity in hours........................................................ 18,000

Total overhead application rate per standard direct labor hour.. $3.00

__d___ 14. What was Sosas volume variance for May?

$1,250 favorable c. $1,500 favorable

$1,250 unfavorable d. $1,500 unfavorable

___c__ 15. What was Sosas controllable variance for May?

$1,250 favorable c. $1,500 favorable

$6,250 favorable d. $1,500 unfavorable