Question
Factory Overhead Cost Variances The following data relate to factory overhead cost for the production of 6,000 computers: Actual: Variable factory overhead $199,300 Fixed factory
Factory Overhead Cost Variances
The following data relate to factory overhead cost for the production of 6,000 computers:
Actual: | Variable factory overhead | $199,300 |
Fixed factory overhead | 67,500 | |
Standard: | 6,000 hrs. at $41 | 246,000 |
If productive capacity of 100% was 10,000 hours and the total factory overhead cost budgeted at the level of 6,000 standard hours was $273,000, determine the variable factory overhead Controllable Variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $6.75 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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