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Budgeted Overhead for Haft Inc

Question 203

Multiple Choice

Budgeted overhead for Haft Inc. at normal capacity of 60000 direct labor hours is $3 per hour variable and $2 per hour fixed. In May $310000 of overhead was incurred in working 63000 hours when 64000 standard hours were allowed.
-The overhead controllable variance is


A) $5000 favorable.
B) $2000 favorable.
C) $10000 favorable.
D) $10000 unfavorable.

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