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 $369,400 Fixed factory overhead 263,700 Standard: 91,000 hrs. at $7.00 (54.10 for variable factory overhead) 637,000 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 $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 Variance-favorable $(3,700 Fixed factory overhead volume variance: Normal productive capacity at 100% 90,000 hrs Standard for amount produced 91,000 Productive capacity not used 1,000 hrs Standard variable factory overhead rate x $7.00 Variance-unfavorable 7,000 Total factory overhead cost variance-unfavorable $3,300 Variance Amount Favorable/Unfavorable Variable Factory Overhead Controllable Variance Fixed Factory Overhead Volume Variance Total Factory Overhead Cost Variance