Question
Factory Overhead Cost Variances The following data relate to factory overhead cost for the production of 4,000 computers: Actual: Variable factory overhead $65,000 Fixed factory
Factory Overhead Cost Variances
The following data relate to factory overhead cost for the production of 4,000 computers:
Actual: | Variable factory overhead | $65,000 |
Fixed factory overhead | 25,500 | |
Standard: | 4,000 hrs. at $21 | 84,000 |
If productive capacity of 100% was 6,000 hours and the total factory overhead cost budgeted at the level of 4,000 standard hours was $92,500, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $4.25 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 |
Variable factory overhead controllable variance | $ | Favorable |
Fixed factory overhead volume variance | Unfavorable | |
Total factory overhead cost variance | $ | Unfavorable |
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