A company's flexible budget for 36,000 units of production showed variable overhead costs of $54,000 and fixed overhead costs of $50,000. The company actually incurred total overhead costs of $95,300 while operating at a volume of 32,000 units. What is the controllable variance?
What will be an ideal response?
| Actual overhead incurred (given) ……………… Overhead allocated to production | ? | $95,300 |
| Variable $1.50/unit* ? 32,000 units …………. | $48,000 | ? |
| Fixed (given) ………………..……………….. | 50,000 | ? |
| Total allocated ………………..……………… | ? | 98,000 |
| Controllable cost variance | ? | $ 2,700 F |
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