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1. The following data relate to factory overhead cost for the production of 7,000 computers: Actual: Variable factory overhead $174,800 Fixed factory overhead 46,750 Standard:

1.

The following data relate to factory overhead cost for the production of 7,000 computers:

Actual: Variable factory overhead $174,800
Fixed factory overhead 46,750
Standard: 7,000 hrs. at $30 210,000

If productive capacity of 100% was 11,000 hours and the total factory overhead cost budgeted at the level of 7,000 standard hours was $227,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $4.25 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
Variable factory overhead controllable variance $
Fixed factory overhead volume variance
Total factory overhead cost variance $

2.

Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 5,600 units of product were as follows:

Standard Costs Actual Costs
Direct materials 7,300 lb. at $5.70 7,200 lb. at $5.60
Direct labor 1,400 hrs. at $17.50 1,430 hrs. at $17.80
Factory overhead Rates per direct labor hr.,
based on 100% of normal
capacity of 1,460 direct
labor hrs.:
Variable cost, $3.40 $4,710 variable cost
Fixed cost, $5.40 $7,884 fixed cost

Each unit requires 0.25 hour of direct labor.

Required:

a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Direct materials price variance $
Direct materials quantity variance
Total direct materials cost variance $

b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Direct labor rate variance $
Direct labor time variance
Total direct labor cost variance $

c. Determine variable factory overhead controllable variance, the fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Variable factory overhead controllable variance $
Fixed factory overhead volume variance
Total factory overhead cost variance $

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