The data related to Ruby River Sporting Goods Company€™s factory overhead cost for the production of 45,000 units of product are as follows:
Actual: Variable factory overhead................. $258,950
Fixed factory overhead..................210,000
Standard: 72,000 hours at $6.30 ($3.50 for variable factory overhead)...453,600
Productive capacity at 100% of normal was 75,000 hours, and the factory overhead cost budgeted at the level of 72,000 standard hours was $462,000. Based upon these data, the chief cost accountant prepared the following variance analysis:

Identify the errors in the factory overhead cost varianceanalysis.

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Variable factory overhead controllable variance Actual variable factory overhead cost incurred Budgeted variable factory overhead for 72,000 hours S258,950 252,000 Variance-unfavorable 6,950 Fixed factory overhead volume variance Normal productive capacity at 100% Standard for amount produced Productive capacity not used Standard variable factory overhead rate 75,000 hours 72,000 3,000 hours X $6.30 Variance-unfavorable 18,900 $25,850 Total factory overhead cost variance-unfavorable