Factory Overhead Cost Variances The following data relate to factory overhead cost for the production...
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Accounting
Factory Overhead Cost Variances
The following data relate to factory overhead cost for the production of 5,000 computers:
Actual:
Variable factory overhead
$183,100
Fixed factory overhead
50,000
Standard:
5,000 hrs. at $44
220,000
If productive capacity of 100% was 8,000 hours and the total factory overhead cost budgeted at the level of 5,000 standard hours was $238,750, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $6.25 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
$
Fixed factory overhead volume variance
Total factory overhead cost variance
$
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