=+EX 23-18 Factory overhead variance corrections obj. 4 Chapter 23 Performance Evaluation Using Variances from Standard Costs 1075 Productive capacity at 100% of normal was 75,000 hours, and the factory overhead cost budgeted at the level of 76,000 standard hours was $456,000. Based on these data, the chief cost accountant prepared the following variance analysis:

Variable factory overhead controllable variance:

Actual variable factory overhead cost incurred $269,000 Budgeted variable factory overhead for 76,000 hours 273,600 ________ Variance—favorable $4,600