The XYZ Corporation produces one main product. The company employs a standard cost system. Below is October’s flexible budget: mlp7

Factory overhead is applied based on normal capacity. The number of standard direct labor hours allowed for October’s production is 850 hours. Actual factory overhead costs for October were $3,350. Actual direct labor hours worked for the month were 910 hours. Normal capacity is 900 direct labor hours. A job order cost system is used to accumulate costs.
Required:
Calculate the factory overhead variance for October using the one-factor analysis method.

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Direct labor hours Variable factory overhead: 800 900 1,000 Indirect materials $ 600 $ 675 $ 750 Indirect labor Supplies Total variable 400 450 500 200 225 250 $1,200 $1.350 $1,500 Fixed factory overhead: Factory rent $ 950 $ 950 $ 950 Depreciation on equipment 700 700 700 Supervisor 240 240 240 Total fixed $1,890 $1,890 $1,890 Total factory overhead $3.090 $3,240 $3,390