The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows:
StandardCosts
Fixed overhead (based on 10,000 hours) 3 hours @ $.80 per hour
Variable overhead3 hours @ $2.00 per hour
Actual Costs
Total variable cost, $18,000
Total fixed cost, $8,000
The amount of the factory overhead controllable variance is:
A.$2,000 unfavorable
B.$3,000 favorable
C.$0
D.$3,000 unfavorable