Factory Overhead Cost Variances The following data relate to factory overhead cost for the production of 4,000 computers: Actual: Variable factory overhead $77,600 Fixed factory overhead 30,000 Standard: 4,000 hrs. at $25 100,000 If productive capacity of 100% was 6,000 hours and the total factory overhead cost budgeted at the level of 4,000 standard hours was $110,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $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 Variable factory overhead controllable variance Fixed factory overhead volume variance Total factory overhead cost variance

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 15E: Factory overhead cost variances The following data relate to factory overhead cost for the...
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Factory Overhead Cost Variances

The following data relate to factory overhead cost for the production of 4,000 computers:

Actual: Variable factory overhead $77,600
  Fixed factory overhead 30,000
Standard: 4,000 hrs. at $25 100,000

If productive capacity of 100% was 6,000 hours and the total factory overhead cost budgeted at the level of 4,000 standard hours was $110,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $5 per hour. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Factory Overhead Cost Variances
The following data relate to factory overhead cost for the production of 4,000 computers:
Actual:
Variable factory overhead
$77,600
Fixed factory overhead
30,000
Standard:
4,000 hrs. at $25
100,000
If productive capacity of 100% was 6,000 hours and the total factory overhead cost budgeted at the level of 4,000 standard hours was $110,000, determine the
variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate
was $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
Variable factory overhead controllable variance
$4
Fixed factory overhead volume variance
Total factory overhead cost variance
$4
Transcribed Image Text:Factory Overhead Cost Variances The following data relate to factory overhead cost for the production of 4,000 computers: Actual: Variable factory overhead $77,600 Fixed factory overhead 30,000 Standard: 4,000 hrs. at $25 100,000 If productive capacity of 100% was 6,000 hours and the total factory overhead cost budgeted at the level of 4,000 standard hours was $110,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $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 Variable factory overhead controllable variance $4 Fixed factory overhead volume variance Total factory overhead cost variance $4
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