Monte Industries has a standard costing system. The following data are available for July:
a. Actual manufacturing overhead cost incurred: $22000
b. Actual machine hours worked: 1600
c. Overhead volume variance: $3600 Unfavorable
d. Total overhead variance: $2000 Unfavorable
e. Overhead is assigned to production on the basis of machine hours
Instructions
Determine the amount of (1) the controllable overhead variance and (2) the overhead applied.

Question

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The Answer of Monte Industries has a standard costing system. The following data are available for July:
a. Actual manufacturing overhead cost incurred: $22000
b. Actual machine hours worked: 1600
c. Overhead volume variance: $3600 Unfavorable
d. Total overhead variance: $2000 Unfavorable
e. Overhead is assigned to production on the basis of machine hours
Instructions
Determine the amount of (1) the controllable overhead variance and (2) the overhead applied.

Monte Industries Has a Standard Costing System