A Company's Flexible Budget for the Range of 35,000 Units

Multiple Choice

A company's flexible budget for the range of 35,000 units to 45,000 units of production showed variable overhead costs of $2 per unit and fixed overhead costs of $72,000. The company incurred total overhead costs of $148,800 while operating at a volume of 40,000 units. The total controllable cost variance is:

A) $6,800 unfavorable.
B) $3,200 unfavorable.
C) $3,200 favorable.
D) $10,000 favorable.
E) $6,800 favorable.