Blumen Textiles Corporation began April with a budget for 90,000 hours of production in the Weaving Department. The department has a full capacity of 100,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of April was as follows:

The actual factory overhead was $782,000 for April. The actual fixed factory overhead was as budgeted. During April, the Weaving Department had standard hours at actual production volume of 92,500 hours.

a. $ 542,000 Factory Overhead Applied costs Controllable variance Actual variable factory overhead Standard variable factory overhead at actual production: Standard hours at actual production Variable factory overhead rate Standard variable factory overhead Controllable variance favorable Actual costs Balance Underapplied 92,500 $6.00 555,000 (13,000) Actual Factory Overhead Applied Factory Overhead b. Budgeted Factory Overhead for Amount Produced Variable cost Fixed cost Total Volume variance: Volume at 100% of normal capacity Less standard hours Idle capacity Fixed overhead rate Volume variance 100,000 92,500 7,500 $2.40 unfavorable 18,000 Total factory overhead cost variance Controllable Variance Volume Variance unfavorable 5,000 U Total Factory Overhead Cost Variance