Question - Factory Overhead Cost Variances
The following data relate to factory overhead cost for the production of 5,000 computers:
| Actual: |
Variable factory overhead |
$97,000 |
| |
Fixed factory overhead |
40,000 |
| Standard: |
5,000 hrs. at $25.00 |
125,000 |
If productive capacity of 100% was 8,000 hours and the factory overhead cost budgeted at the level of 5,000 standard hours was $140,000, determine the variable factory overhead Controllable Variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $5.00 per hour. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.