Question

The following data relate to factory overhead cost for the production of 8,000 computers:

Actual:	Variable factory overhead	$223,100
	Fixed factory overhead	94,250
Standard:	8,000 hrs. at $36	288,000

If productive capacity of 100% was 13,000 hours and the total factory overhead cost budgeted at the level of 8,000 standard hours was $324,250, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $7.25 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	$	Favorable
Fixed factory overhead volume variance		Unfavorable
Total factory overhead cost variance	$	Unfavorable

Answer 1