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Steep, Inc. budgeted 6,000 cup holders for March. Each holder is sold for $12. Actual production for March was 6,300 cup holders. Manufacturing overhead is

Steep, Inc. budgeted 6,000 cup holders for March. Each holder is sold for $12. Actual production for March was 6,300 cup holders. Manufacturing overhead is applied based on units produced. Standards and actual costs follow for March:

Standards

Actual

Materials

1.1 pounds @ $2.40 a pound

6,400 pounds purchased for $15,040;

6,450 pounds used

Labor

0.10 hours @ $14.00 per hour

620 hours @ $14.30 per hour

Variable overhead

$16,800

$18,400

Fixed overhead

$6,900

$10,300

How much is the controllable overhead variance?

a)$1,460 unfavorable

b)$4,160 unfavorable

c)$2,300 unfavorable

d)$980 favorable

e)$480 favorable

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