Factory Overhead Variance Corrections

The data related to Shunda Enterprises Inc.s factory overhead cost for the production of 50,000 units of product are as follows:

Actual:	Variable factory overhead	$308,500
	Fixed factory overhead	220,200
Standard:	76,000 hrs. at $7.00 ($4.10 for variable factory overhead)	532,000

Productive capacity at 100% of normal was 75,000 hours, and the factory overhead cost budgeted at the level of 76,000 standard hours was $528,800. Based on these data, the chief cost accountant prepared the following variance analysis:

Variable factory overhead controllable variance:
Actual variable factory overhead cost incurred	$308,500
Budgeted variable factory overhead for 76,000 hours	311,600
Variancefavorable			$(3,100)
Fixed factory overhead volume variance:
Normal productive capacity at 100%	75,000	hrs.
Standard for amount produced	76,000
Productive capacity not used	1,000	hrs.
Standard variable factory overhead rate	x $7.00
Varianceunfavorable			7,000
Total factory overhead cost varianceunfavorable			$3,900

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	$fill in the blank 1	FavorableUnfavorableFavorable
Fixed Factory Overhead Volume Variance	fill in the blank 3	FavorableUnfavorableFavorable
Total Factory Overhead Cost Variance