5

Factory Overhead Cost Variances

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

Actual:	Variable factory overhead	$191,800
	Fixed factory overhead	52,250
Standard:	7,000 hrs. at $33	231,000

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 $250,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $4.75 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	$