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) $9,000 favorable
B) $9,000 unfavorable
C) $5,500 favorable
D) $5,500 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) $9,000 favorable 
B) $9,000 unfavorable 
C) $5,500 favorable 
D) $5,500 unfavorable

Quizplus · Accepted Answer

Since the variable factory overhead controllable variance is given as $5,500 favorable, it means that Zoyza Company was able to control its variable factory overhead costs better than expected. This is a positive variance, and hence the answer is C.

Use This Information for Zoyza Company to Answer the Questions