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 $458,000 494,000 963,600 Variable factory overhead Fixed factory overhead Standard: 132,000 hrs. at $7.30 ($3.50 for variable factory overhead) 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% Standard for amount produced Productive capacity not used Standard variable factory overhead rate 130,000 hrs. 132,000 2,000 hrs. x $7.30 Variance-unfavorable 14,600 Total factory overhead cost variance-unfavorable 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 Variable Factory Overhead Controllable Variance Fixed Factory Overhead Volume Variance Total Factory Overhead Cost Variance $10,600 Amount Favorable/Unfavorable 4,000 X 7,600 X 11,600 X Favorable Favorable Favorable