Reference no: EM132883885

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.