Question
Factory Overhead Cost Variances The following data relate to factory overhead cost for the production of 8,000 computers: Actual: Variable factory overhead $217,300 Fixed factory
Factory Overhead Cost Variances
The following data relate to factory overhead cost for the production of 8,000 computers:
Actual: | Variable factory overhead | $217,300 |
Fixed factory overhead | 52,000 | |
Standard: | 8,000 hrs. at $32 | 256,000 |
If productive capacity of 100% was 13,000 hours and the total factory overhead cost budgeted at the level of 8,000 standard hours was $276,000, 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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