A company's flexible budget for the range of 35,000 units to 45,000 units of production showed variable overhead costs of $2 per unit and fixed overhead costs of $72,000.The company incurred total overhead costs of $148,800 while operating at a volume of 40,000 units.The total controllable cost variance is:
A) $6,800 favorable.
B) $6,800 unfavorable.
C) $3,200 favorable.
D) $3,200 unfavorable.
E) $10,000 favorablE.
Correct Answer:
Verified
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