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Problem - Factory overhead cost variances - Casual Comfort Textiles Corporation began January with a budget for 30,000 hours of production in the Weaving Department. The department has a full capacity of 40,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of January was as follows:
Variable overhead $124,500
Fixed overhead 62,000
Total $186,500
The actual factory overhead was $178,900 for January. The actual fixed factory over-head was as budgeted. During January, the Weaving Department had standard hours at actual production volume of 31,000 hours.
Required -
a. Determine the variable factory overhead controllable variance.
b. Determine the fixed factory overhead volume variance.
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