MANAGERIAL ACCOUNTING: Factory Overhead Budget & Cost Variances

Ex 23-17, 18

EX 23-17 Factory overhead cost variances The following data relate to factory overhead cost for the production of 15,000 computers: OBJ. 4 Volume variance, $4,000 U Variable factory overhead Fixed factory overhead 19,500 hrs. at $20 $240,000 160,000 390,000 Actual: Standard: If productive capacity of 100% was 20,000 hours and the total factory overhead cost budgeted at the level of 19,500 standard hours was $394,000, determine the variable fac- tory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $8.00 per hour. OBJ. 4 EX 23-18 Factory overhead cost variances Blumen Textiles Corporation began April with a budget for 90,000 hours of production in the Weaving Department. The department has a full capacity of 100,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the begin- ning of April was as follows: Va. $(13,000) F Excel Variable overhead Fixed overhead Total $540,000 240,000 $780,000 The actual factory overhead was $782,000 for April. The actual fixed factory overhead was as budgeted. During April, the Weaving Department had standard hours at actual production volume of 92,500 hours. a. Determine the variable factory overhead controllable variance. b. Determine the fixed factory overhead volume variance