Reference no: EM132687211

Problem - Factory overhead variances - The May Company produced 800 toy cars that required 0.32 standard hour per unit to manufacture. The standard variable factory overhead rate per unit is $15.00 per hour. The actual variable factory overhead was $3,775. The normal productive capacity is 300 direct labor hours, and the standard fixed factory overhead rate is $17.00 per direct labor hour. Thus, the budgeted amount of fixed factory overhead is $5,100 (300 direct labor hours x $17.00 per hour).

Required - Determine the variable factory overhead controllable variance and the fixed factory overhead volume variance.