(TCO 5) Yourtube Company uses a standard cost system

(TCO 5) Yourtube Company uses a standard cost system and prepared the following budget at normal capacity for the

month of January.

Direct labor hours 24,000

Variable factory overhead $ 48,000

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Fixed factory overhead $108,000

Total factory overhead per DLH $6.50

Actual data for January were as follows:  

Direct labor hours worked 22,000

Total factory overhead  $147,000

Standard DLH allowed for the capacity attained 21,000

Using the two-way analysis of overhead variances, what is the budget (controllable) variance for January?

a. $3,000

b. $13,500 unfavorable

c. $9,000 favorable

d. $10,500 unfavorable