Use this information for Zoyza Company to answer the questions that follow.

The following data are given for Zoyza Company:

Overhead is applied on standard labor hours.

-The variable factory overhead controllable variance is
A) $73,250 favorable
B) $73,250 unfavorable
C) $59,400 favorable
D) $59,400 unfavorable

Question

Use this information for Zoyza Company to answer the questions that follow.
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The following data are given for Zoyza Company:
​
  Overhead is applied on standard labor hours.
​​
-The variable factory overhead controllable variance is
A) $73,250 favorable 
B) $73,250 unfavorable 
C) $59,400 favorable 
D) $59,400 unfavorable

Quizplus · Accepted Answer

The variable factory overhead controllable variance is calculated by comparing the actual variable overhead costs incurred to the budgeted (or standard) costs for the actual level of activity. If the actual costs exceed the budgeted costs, the variance is unfavorable. Since the specific numbers leading to the calculation are not provided, the correct answer cannot be directly calculated from the information given. However, based on the options provided and assuming the context of the question implies an unfavorable variance, option B ($73,250 unfavorable) would be the correct choice.

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