Flossmoor Textiles Corporation began October with a budget for 25,000 hours of production in the Weaving Department. The department has a full capacity of 30,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of October was as follows:
Variable overhead ......... $ 70,000
Fixed overhead .......... 48,000
Total ............. $118,000
The actual factory overhead was $122,250 for October. The actual fixed factory overhead was as budgeted. During October, the Weaving Department had standard hours at actual production volume of 27,250 hours.
a. Determine the variable factory overhead controllable variance.
b. Determine the fixed factory overhead volume variance.