Final answer:
The variable factory overhead controllable variance for Tucker Company is -$1,250, indicating that actual overhead costs were higher than the standard costs by this amount, reflecting a lack of control over the variable costs.
Step-by-step explanation:
The variable factory overhead controllable variance is calculated by comparing the standard variable overhead cost based on the actual output to the actual variable overhead costs incurred. To start the calculation, the standard overhead cost per unit is multiplied by the standard hours required for each unit, and then by the number of units produced to determine the total standard variable overhead cost.
First, we calculate the total standard variable overhead cost as follows:
- Standard hours per unit: 3.20 hours
- Standard variable overhead rate: $4.60 per hour
- Number of units produced: 4,900 units
- Total standard variable overhead cost = Standard hours per unit x Standard variable overhead rate x Number of units produced
= 3.20 hours/unit x $4.60/hour x 4,900 units
= $72,320
Next, we compare this figure to the actual variable overhead costs:
- Actual variable factory overhead cost: $73,570
Now, we calculate the variance:
Variable factory overhead controllable variance = Total standard variable overhead cost - Actual variable factory overhead cost
= $72,320 - $73,570
= -$1,250
Therefore, the variable factory overhead controllable variance is -$1,250. This negative variance indicates that the actual variable overhead costs were higher than the standard variable overhead costs by $1,250, meaning the company had less control over their variable factory overhead costs than expected.