\begin{tabular}{|l|l|l|}
\hline
Variable [tex]$OH$[/tex] rate & [tex]$\$[/tex]3.35$ & \\
\hline
Fixed [tex]$OH$[/tex] rate & [tex]$\$[/tex]1.80$ & \\
\hline
Hours & 18,900 & [tex]$17,955^{\star}$[/tex] \\
\hline
Fixed overhead & [tex]$\$[/tex]46,000[tex]$ & $[/tex]\[tex]$67,430$[/tex] \\
\hline
Actual variable overhead & & \\
\hline
Total factory overhead & [tex]$\$[/tex]101,450$ \\
\hline
\end{tabular}

*Actual hours are equal to standard hours for units produced.

The variable factory overhead controllable variance is calculated using the formula:

[tex]\[ \text{Actual Variable Factory Overhead} - \text{Budgeted Variable Factory Overhead} = \text{Variable Factory Overhead Controllable Variance} \][/tex]

(A) [tex]$\$[/tex]7,280.75$ unfavorable
(B) [tex]$\$[/tex]7,280.75$ favorable
(C) [tex]$\$[/tex]8,981.75$ favorable
(D) [tex]$\$[/tex]8,981.75$ unfavorable



Answer :

To solve for the variable factory overhead controllable variance, we need to follow these steps:

1. Calculate the Budgeted Variable Factory Overhead:
[tex]\[ \text{Budgeted Variable Factory Overhead} = \text{Variable OH rate} \times \text{Standard hours} \][/tex]
Given that the variable overhead rate is \$3.35 and the standard hours are 18,900:
[tex]\[ \text{Budgeted Variable Factory Overhead} = 3.35 \times 18,900 = \$63,315.00 \][/tex]

2. Identify the Actual Variable Factory Overhead:
It is mentioned in the table that the total factory overhead is \[tex]$101,450 and the actual fixed overhead is \$[/tex]67,430. Therefore, the actual variable factory overhead can be calculated as follows:
[tex]\[ \text{Actual Variable Factory Overhead} = \text{Total Factory Overhead} - \text{Actual Fixed Overhead} \][/tex]
Thus:
[tex]\[ \text{Actual Variable Factory Overhead} = 101,450 - 67,430 = \$34,020.00 \][/tex]

3. Calculate the Variable Factory Overhead Controllable Variance:
The controllable variance is defined as the difference between the actual variable factory overhead and the budgeted variable factory overhead:
[tex]\[ \text{Variable Factory Overhead Controllable Variance} = \text{Actual Variable Factory Overhead} - \text{Budgeted Variable Factory Overhead} \][/tex]
Substituting the values we have calculated:
[tex]\[ \text{Variable Factory Overhead Controllable Variance} = 34,020 - 63,315 = -\$29,295.00 \][/tex]
A negative variance indicates an unfavorable variance.

4. Conclusion:
The variable factory overhead controllable variance is \$29,295.00 unfavorable.

Since none of the options provided match this result exactly, it would be safe to assume the solution needs us to match with any analogous figures:
- The closest match in nature (though the values are different) is "unfavorable."
Hence:
[tex]\[ \boxed{\text{\(D) \$8,981.75 unfavorable\)}} \][/tex]
would be the coherent analogy yet the correct figure derived is indeed \$29,295.00 unfavorable.