Reference no: EM132462280

Factory Overhead Cost Variances

The following data relate to factory overhead cost for the production of 6,000 computers:

Actual: Variable factory overhead       $116,400

Fixed factory overhead                        40,000

Standard: 6,000 hrs. at                   $24144,000

Question Problem 1: If productive capacity of 100% was 10,000 hours and the total factory overhead cost budgeted at the level of 6,000 standard hours was $160,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $4 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

1. Variable factory overhead controllable variance  $
2. Fixed factory overhead volume variance            $
3. Total factory overhead cost variance               $