Factory Overhead Variance Corrections The data related to Shunda Enterprises Inc.'s factory overhead cost for the...

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Factory Overhead Variance Corrections The data related to Shunda Enterprises Inc.'s factory overhead cost for the production of 50,000 units of product are as follows: Actual: Variable factory overhead Fixed factory overhead $173,100 125,900 Standard: 76,000 hrs. at $4.00 ($2.30 for variable factory overhead) 304,000 Productive capacity at 100% of normal was 75,000 hours, and the factory overhead cost budgeted at the level of 76,000 standard hours was $302,200. Based on these data, the chief cost accountant prepared the following variance analysis: Variable factory overhead controllable variance: Actual variable factory overhead cost incurred $173,100 Budgeted variable factory overhead for 76,000 hours (174,800) Variance-favorable Fixed factory overhead volume variance: Normal productive capacity at 100% Standard for amount produced Productive capacity not used Standard variable factory overhead rate Variance-unfavorable Total factory overhead cost variance-unfavorable 75,000 hrs. (76,000) 1,000 hrs. $4.00 $(1,700) 4,000 $2,300 Factory Overhead Variance Corrections The data related to Shunda Enterprises Inc.'s factory overhead cost for the production of 50,000 units of product are as follows: Actual: Variable factory overhead Fixed factory overhead $173,100 125,900 Standard: 76,000 hrs. at $4.00 ($2.30 for variable factory overhead) 304,000 Productive capacity at 100% of normal was 75,000 hours, and the factory overhead cost budgeted at the level of 76,000 standard hours was $302,200. Based on these data, the chief cost accountant prepared the following variance analysis: Variable factory overhead controllable variance: Actual variable factory overhead cost incurred $173,100 Budgeted variable factory overhead for 76,000 hours (174,800) Variance-favorable Fixed factory overhead volume variance: Normal productive capacity at 100% Standard for amount produced Productive capacity not used Standard variable factory overhead rate Variance-unfavorable Total factory overhead cost variance-unfavorable 75,000 hrs. (76,000) 1,000 hrs. $4.00 $(1,700) 4,000 $2,300