A.

Factory Overhead Cost Variances

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

Actual:	Variable factory overhead	$84,400
	Fixed factory overhead	35,000
Standard:	6,000 hrs. at $18	108,000

If productive capacity of 100% was 10,000 hours and the total factory overhead cost budgeted at the level of 6,000 standard hours was $122,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $3.5 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
Variable factory overhead controllable variance
Fixed factory overhead volume variance
Total factory overhead cost variance

B.

Direct Labor Variances

The following data relate to labor cost for production of 5,300 cellular telephones:

Actual:	3,610 hrs. at $15.30
Standard:	3,550 hrs. at $15.60

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.

Rate variance
Time variance
Total direct labor cost variance