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
Variancefavorable			$ 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
Varianceunfavorable			14,600
Total factory overhead cost varianceunfavorable			$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.

Variance	Amount	Favorable/Unfavorable
Variable Factory Overhead Controllable Variance	$
Fixed Factory Overhead Volume Variance	$
Total Factory Overhead Cost Variance	$