\begin{tabular}{lll} & \multicolumn{1}{c}{ Standard Costs } & \multicolumn{1}{c}{ Actual Costs } \\ \hline Direct materials & 100,000lb. at $6.40 & 101,000lb, at $6.50 \\ Direct labor & 2,080hrs. at $15.75 & 2,000 hrs, at $15.40 \\ Factory overhead & Rates per direct labor hr. & \\ & based on 100% of normal & \\ & capacity of 2,000 direct & \\ & labor hrs.: & \\ & Variable cost, $4.00 & $8,200 variable cost \\ & Fixed cost, $6.00 & $12,000 fixed cost \end{tabular} 50 c. Factory Overhead Cost Variance Variable factory overhead controllable variance: Actual variable FO cost incurred Budgeted variable FO cost for 2,080 hrs. Variance \begin{tabular}{|c|c|} \hline$ & 8,200 \\ \hline & 8,320 \\ \hline \end{tabular} $ (120) favorable Fixed factory overhead volume variance: Hours at normal capacity Standard hours for amount produced Productive capacity not used Standard fixed FO cost rate Variance \begin{tabular}{|r|} \hline 2,000 \\ \hline 2,080 \\ \hline(80) \\ \hline$6.00 \\ \hline \end{tabular} (480) favorable Total factory overhead cost variance Alternative Computation of Overhead Variances: Factory Overhead - Actual costs Balance Actual Factory Overthead Budgeted Factory Overnead Hilin for Amount Produced Variable cost Fixed cost Total. Controliable Variance Applipd Factory Ovathead for Amount Produced Volume Varance Total Factory Overtiead Cost varance