Donellan Company has a standard and flexible budgeting system and uses a two-variance analysis of factory overhead. Selected data for the February production activity follows: Budgeted fixed factory overhead costs $ 70,000 Actual factory overhead incurred $250,000 Variable factory overhead rate per direct labor hour $ 7 Standard direct labor hours 25,000 Actual direct labor hours 26,000 The

flexible-budget variance for February is:
a. $5,00 . favorable.
b. $5,00 . unfavorable.
c. $2,00 . favorable.
d. $2,00 . unfavorable.


b

Business

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