Alternative Computation of Overhead Variances:

Factory Overhead

Actual costs Balance

$\backslash$table$[[$Factory Overhead$],[703,100,$Applied costs$]]$

Underapplied

Actual Factory

Budgeted Factory Overhead

Applied Factory

Overhead

$$703,100$

F for Amount Produced Overhead

Controllable

Variance

Total Factory

Overhead

Cost Variance

Supporting calculation:

Variable factory overhead rate:

Budgeted total variable cost

Budgeted hours

Variable factory overhead rate

Fixed factory overnead rate:

Total fixed costs

Productive capacity hours

Fixed factory overhead rate

Total

Actual hours

Applied costs