Factory Overhead Variance Corrections The data related to Shunda Enterprises Inc.'s factory overhead cost for the production of 100,000 units of product are as follows: Actual: Variable factory overhead $458,000 Fixed factory overhead 494,000 Standard: 132,000 hrs. at $7.30 ($3.50 for variable factory overhead) 963,600 Productive capacity at 100% of normal was 130,000 hours, and the factory overhead cost budgeted at the level of 132,000 standard hours was $956,000. Based on these data, the chief cost accountant prepared the following variance analysis: Variable factory overhead controllable variance: Actual variable factory overhead cost incurred $458,000 Budgeted variable factory overhead for 132,000 hours (462,000) Variance-favorable $(4,000) Fixed factory overhead volume variance Normal productive capacity at 100% 130,000 hrs Standard for amount produced (132,000) Productive capacity not used 2,000 hrs. Standard variable factory overhead rate X $7.30 Variance-unfavorable 14,600 Total factory overhead cost variance unfavorable $10,600 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. Normal productive capacity at 100% 130,000 hrs. Standard for amount produced (132,000) Productive capacity not used 2,000 hrs. Standard variable factory overhead rate X $7.30 Variance-unfavorable 14,600 Total factory overhead cost variance-unfavorable $10,000 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 Controllable Variance 4,000 x Unfavorable x Fixed Factory Overhead Volume Variance 7,600 x Favorable Total Factory Overhead Cost Variance 11,600 X Unfavorable X Feedha Check My Wor The variable factory overhead controllable variance is the difference between the actual variable overhead costs and the budgeted variable overhead for actual production The fixed factory overhead volume variance is the difference between the budgeted fixed overhead at 100% of normal capacity and the standard fixed overhead for the actual units produced