Textbook Problem

Factory overhead variance corrections

The data related to Danville Sporting Goods Company's factory overhead cost for the production of 40,000 units of product are as follows:

Productive capacity at 100% of normal was 100.000 hours, and the factory overhead cost budgeted at the level of 105,000 standard hours was $720,000. Based on these data, the chief cost accountant prepared the following variance analysis:

Identify the errors in the factory overhead cost variance analysis.