1. Factory Overhead Cost Variances

The following data relate to factory overhead cost for the production of 6,000 computers:

Actual:	Variable factory overhead	$107,700
	Fixed factory overhead	45,000
Standard:	6,000 hrs. at $23	138,000

If productive capacity of 100% was 10,000 hours and the factory overhead cost budgeted at the level of 6,000 standard hours was $156,000, determine the variable factory overhead Controllable Variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $4.5 per hour. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Variance	Amount	Favorable/Unfavorable
Controllable variance	$	Favorable
Volume variance	$	Unfavorable
Total factory overhead cost variance:	$

2.

Factory Overhead Cost Variances

Blumen Textiles Corporation began April with a budget for 29,000 hours of production in the Weaving Department. The department has a full capacity of 39,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of April was as follows:

Variable overhead	$72,500
Fixed overhead	50,700
Total	$123,200

The actual factory overhead was $124,700 for April. The actual fixed factory overhead was as budgeted. During April, the Weaving Department had standard hours at actual production volume of 30,000 hours. Determine the variable factory overhead controllable variance and the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required.

a. Variable factory overhead controllable variance: $ Favorable

b. Fixed factory overhead volume variance: $ Unfavorable

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