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Problem - Factory overhead cost variances - The following data relate to factory overhead cost for the production of 4,000 computers:
Actual:
Variable factory overhead
$130,000
Fixed factory overhead
30,875
Standard:
5,000 hrs. at $32
160,000
If productive capacity of 100% was 6,500 hours and the factory overhead cost budgeted at the level of 5,000 standard hours was $167,125, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $4.75 per hour.
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