Factory Overhead Variance Corrections

The data related to Elite Sporting Goods Company's factory overhead cost for the production of 60,000 units of product are as follows:

Actual:	Variable factory overhead	$369,400
	Fixed factory overhead	263,700
Standard:	91,000 hrs. at $7 ($4.1 for variable factory overhead)	637,000

Productive capacity at 100% of normal was 89,900 hours, and the factory overhead cost budgeted at the level of 91,000 standard hours was $633,200. Based on these data, the chief cost accountant prepared the following variance analysis:

Variable factory overhead controllable variance:
Actual variable factory overhead cost incurred	$369,400
Budgeted variable factory overhead for 91,000 hours	373,100
Variancefavorable			$-3,700
Fixed factory overhead volume variance:
Normal productive capacity at 100%	89,900	hrs.
Standard for amount produced	91,000
Productive capacity not used	1,100	hrs.
Standard variable factory overhead rate	x $7
Varianceunfavorable			7,700
Total factory overhead cost varianceunfavorable			$4,000

Compute the following to assist you in identifying the errors in the factory overhead cost variance analysis. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required.

Variance	Amount	Favorable/Unfavorable
Variable Factory Overhead The difference between the actual amount of variable factory overhead cost incurred and the amount of variable factory overhead budgeted for the standard product.Controllable Variance:	$	Favorable < >FavorableUnfavorable
Fixed Factory Overhead The difference between the budgeted fixed overhead at 100% of normal capacity and the standard fixed overhead for the actual production achieved during the period.Volume Variance:	$	Favorable < >FavorableUnfavorable
Total Reports budgeted and actual costs for variable and fixed factory overhead along with the related controllable and volume variances.Factory Overhead Cost Variance:	$	Favorable < >FavorableUnfavorable