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Factory Overhead Cost Variances The following data relate to factory overhead cost for the production...

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Question

Accounting

Factory Overhead Cost Variances

The following data relate to factory overhead cost for the production of 7,000 computers:

Actual:

Variable factory overhead

$273,300

Fixed factory overhead

63,250

Standard:

7,000 hrs. at $46

322,000

If productive capacity of 100% was 11,000 hours and the factory overhead cost budgeted at the level of 7,000 standard hours was $345,000, determine the variable factory overhead Controllable Variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $5.75 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

Controllable variance

$

Favorable

Volume variance

$

Unfavorable

Total factory overhead cost variance:

$

Unfavorable

Feedback

I have the controllable variance right but not the others.

If you could please show the work too thank you!

Answer & Explanation Solved by verified expert
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