Factory Overhead Variance Corrections The data related to Shunda Enterprises Inc.'s factory overhead cost for the production of 60,000 units of product are as follows: Actual: Variable factory overhead Fixed factory overhead $261,300 188,400 Standard: 91,000 hrs. at $5.00 ($2.90 for variable factory overhead) 455,000 Productive capacity at 100% of normal was 90,000 hours, and the factory overhead cost budgeted at the level of 91,000 standard hours was $452,300. Based on these data, the chief cost accountant prepared the following variance analysis: Variable factory overhead controllable variance: Actual variable factory overhead cost incurred $261,300 Budgeted variable factory overhead for 91,000 hours (263,900) Variance-favorable Fixed factory overhead volume variance: Normal productive capacity at 100% Standard for amount produced 90,000 hrs. (91,000) 1,000 hrs. Standard variable factory overhead rate $5.00 Productive capacity not used Variance-unfavorable Total factory overhead cost varianceunfavorable $(2,600) 5,000 $2,400