Factory overhead cost variances
Osceola Textiles Corporation began May with a budget for 45.000 hours of production in the Weaving Department. The department has a full capacity of 60,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of May was as follows:
The actual factory overhead was $1,428,000 for May. The actual fixed factor)' overhead was as budgeted. During May, the Weaving Department had standard hours at actual production volume of 52.000 hours.
a.Determine the variable factory overhead controllable variance.
b. Determine the fixed factory overhead volume variance.
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