Factory Overhead Cost Variances The following data relate to factory overhead costs for the production of 6,000
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Factory Overhead Cost Variances
The following data relate to factory overhead costs for the production of 6,000 computers:
Actual: | Variable factory overhead | $229,900 |
Fixed factory overhead | 65,000 | |
Standard: | 6,000 hrs. at $46 | 276,000 |
If the productive capacity of 100% was 10,000 hours and the factory overhead cost budgeted at the level of 6,000 standard hours was $302,000, determine the variable factory overhead Controllable Variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $6.5 per hour. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Variance | Amount | Favorable/Unfavorable |
Controllable variance | $ | |
Volume variance | $ | |
Total factory overhead cost variance: | $ |
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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