The data related to Elite Sporting Goods Company€™s factory overhead cost for the production of 50,000 units of product are as follows:

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 $377,900. Based on these data, the chief cost accountant prepared the following variance analysis:

Identify the errors in the factory overhead cost variance analysis.

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Variable factory overhead Fixed factory overhead 76,000 hrs. at $5.00 ($2.90 for variable factory overhead) Actual: $218,900 157,500 380,000 Standard: Variable factory overhead controllable variance: Actual variable factory overhead cost incurred $218,900 Budgeted variable factory overhead for 76,000 hours 220,400 Variance-favorable -$1,500 Fixed factory overhead volume variance: Normal productive capacity at 100% 75,000 hrs. Standard for amount produced 76,000 Productive capacity not used 1,000 hrs. Standard variable factory overhead rate x $5.00 Variance-unfavorable 5,000 Total factory overhead cost variance-unfavorable $3,500