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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.
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