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eBook Calculator Factory Overhead Cost Variances The following data relate to factory overhead cost for the production of 6,000 computers: Actual: Variable factory overhead $154,200

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Factory Overhead Cost Variances

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

Actual: Variable factory overhead $154,200
Fixed factory overhead 65,000
Standard: 6,000 hrs. at $33 198,000

If productive capacity of 100% was 10,000 hours and the factory overhead cost budgeted at the level of 6,000 standard hours was $224,000, determine the variable factory overhead Controllable Variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $6.5 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
Controllable variance $ Favorable
Volume variance $ Unfavorable
Total factory overhead cost variance: $ Unfavorable

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