Factory Overhead Cost Variances
The following data relate to factory overhead cost for the production of 7,000 computers:
Actual: | Variable factory overhead | $98,500 |
Fixed factory overhead | 38,500 | |
Standard: | 7,000 hrs. at $18 | 126,000 |
If productive capacity of 100% was 11,000 hours and the factory overhead cost budgeted at the level of 7,000 standard hours was $140,000, determine the variable factory overhead Controllable Variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $3.5 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 |
Controllable variance | $ | Favorable |
Volume variance | $ | Unfavorable |
Total factory overhead cost variance: | $ | Unfavorable |
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