Reference no: EM132716794

Problem - Factory overhead cost variances - The following data relate to factory overhead cost for the production of 10,000 computers:

Actual: Variable factory overhead $262,000

Fixed factory overhead 90,000

Standard: 14,000 hrs. at $25 350,000

If productive capacity of 100% was 15,000 hours and the total factory overhead cost budgeted at the level of 14,000 standard hours was $356,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $6.00 per hour.