Reference no: EM132542980

The standard factory overhead rate is $12 per machine hour ($10 for variable factory overhead and $2 for fixed factory overhead) based on 100% capacity of 42,000 machine hours. The standard cost and the actual cost of factory overhead for the production of 2,000 units were as follows:

Actual: Variable factory overhead        $350,500

Fixed factory overhead                    $84,000

Standard: 35,000 hours @$12            $420,000

Question 1: Determine the volume variance, controllable variance, and total factory overhead cost variance.