Apply Responsibility Accounting Practice Test

Thornwood Division is a cost center. Budgeted controllable costs total $450,000 (direct materials $180,000, direct labor $120,000, variable overhead $60,000, fixed overhead $90,000). Actual controllable costs were: direct materials $188,000, direct labor $116,000, variable overhead $65,000, fixed overhead $88,000. Allocated corporate overhead of $45,000 is identical in budget and actual. What is the controllable cost variance for performance evaluation?

Thornwood Division reports actual controllable costs of $457,000 versus a budget of $450,000, plus allocated corporate overhead of $45,000 (equal in both actual and budget). What is the total cost budget variance including all line items?