The data related to Osage Sporting Goods Company's factory overhead cost for the production of 60,000 units of product are as follows:

Productive capacity at 100% of normal was 80,000 hours, and the factory overhead cost budgeted at the level of 76,000 standard hours was $490,000. 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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$274,500 224,000 Standard: 76,000 hours at $6.30 (S3.50 for variable factory overhead 478,800 Actual Variable factory overhead Fixed factory overhead Variable factory overhead controllable variance: Actual variable factory overhead cost incurred Budgeted variable factory overhead for 76,000 hours 274,500 266,000 Variance-unfavorable $8,500 Fixed factory overhead volume variance: Normal productive capacity at 100% Standard for amount produced Productive capacity not used Standard variable factory overhead rate 80,000 hours 76,000 4,000 hours x $6.30 Variance-unfavorable 25,200 33,700 Total factory overhead cost variance-unfavorable