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actory Overhead Cost Variances The following data relate to factory overhead cost for the production of 5,000 computers: Actual: Variable factory overhead $97,000 Fixed factory

actory Overhead Cost Variances

The following data relate to factory overhead cost for the production of 5,000 computers:

Actual: Variable factory overhead $97,000
Fixed factory overhead 32,000
Standard: 5,000 hrs. at $24 120,000

If productive capacity of 100% was 8,000 hours and the total factory overhead cost budgeted at the level of 5,000 standard hours was $132,000, 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 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 $
Volume variance $
Total factory overhead cost variance $

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