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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.
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