SOLVE QUESTION B AND PROVIDE WORK-NOTES. Factory Overhead Cost Variances Perma Weave Textiles Corporation...
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SOLVE QUESTION B AND PROVIDE WORK-NOTES.
Factory Overhead Cost Variances
Perma Weave Textiles Corporation began January with a budget for 41,000 hours of production in the Weaving Department. The department has a full capacity of 55,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of January was as follows:
Variable overhead
$110,700
Fixed overhead
77,000
Total
$187,700
The actual factory overhead was $190,000 for January. The actual fixed factory overhead was as budgeted. During January, the Weaving Department had standard hours at actual production volume of 43,000 hours. 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.
a. Determine the variable factory overhead controllable variance. $ -3,100 Favorable
b. Determine the fixed factory overhead volume variance. $ ? Unfavorable
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