Factory Overhead Cost Variances The following data relate to factory overhead co
ID: 2371301 • Letter: F
Question
Factory Overhead Cost Variances
The following data relate to factory overhead cost for the production of 6,000 computers:
If productive capacity of 100% was 10,000 hours and the factory overhead cost budgeted at the level of 6,000 standard hours was $273,000, determine the variable factory overhead Controllable Variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $5.25 per hour. Use the minus sign to enter favorable variances as negative numbers.
Controllable variance $-6600 Favorable
Volume Variance $ Unfavorable
Total factory overhead cost variance $ Unfavorable
Actual: Variable factory overhead $213,900 Fixed factory overhead 52,500 Standard: 6,000 hrs. at $42.00 252,000Explanation / Answer
Controllable variance $-6600 Favorable
Volume Variance $ 21,000 Unfavorable
Total factory overhead cost variance $ 14,400 Unfavorable
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