Question: Tiger Products, Inc. has a standard costing and flexible budgeting system and uses a two-way analysis of overhead variances. Selected data from April 2017's production activity is as follows:
Budgeted fixed factory overhead costs $64,000
Actual factory overhead incurred $230,000
Variable factor overhead rate per direct labor hour $5
Standard direct labor hours $32,000
Actual direct labor hours $33,000
What is the budget variance?