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The following data relate to factory overhead cost for the production of 6,000 computers: Actual: Variable factory overhead $203,700 Fixed factory overhead 70,000 Standard: 6,000
The following data relate to factory overhead cost for the production of 6,000 computers:
Actual: | Variable factory overhead | $203,700 |
Fixed factory overhead | 70,000 | |
Standard: | 6,000 hrs. at $42 | 252,000 |
If productive capacity of 100% was 10,000 hours and the total factory overhead cost budgeted at the level of 6,000 standard hours was $280,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $7 per hour. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Variance | Amount | Favorable/Unfavorable |
Variable factory overhead controllable variance | $ | Favorable |
Fixed factory overhead volume variance | Unfavorable | |
Total factory overhead cost variance | $ | Unfavorable |
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