10. Factory Overhead Cost VariancesBlumen Textiles Corporation began April with a budget for 48,000 hours of production in the Weaving Department. The department has a full capacity of64,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of April was as follows:Variable overhead$100,800Fixed overhead70,400Total$171,200The actual factory overhead was $173,300 for April. The actual fixed factory overhead was as budgeted. During April, the Weaving Department hadstandard hours at actual production volume of 50,000 hours. Enter a favorable variance as a negative number using a minus sign and an unfavorablevariance as a positive number. Round your interim computations to the nearest cent, if required.a. Determine the variable factory overhead controllable variance.b. Determine the fixed factory overhead volume variance.

Variable factory overhead controllable variance = Standard variable overhead - Actual variable overhead Fixed overhead volume variance = Fixed overhead applied - Budgeted fixed overheada. Budgeted rate of variable overhead = $100,800 / 48,000 = $2.10 per hour Standard variable overhead for actual production = 50,000*$2.10 = $105,000 Actual variable overhead = $100,800 Variable factory overhead controllable variance = Standard variable overhead - Actual variable overheadVariable factory overhead controllable variance = $100,800 - ($173,300 - $70,400)Variable factory overhead controllable variance = $2,100 Unfavorable b. Predetermined fixed overhead rate = $70,400 / 64,000 = $1.10 per hour Fixed overhead applied = SH * SR = 50,000*$1.10 = $55,000 Fixed overhead volume variance = Fixed overhead applied - Budgeted fixed overheadFixed overhead volume variance = $55,000 - $70,400Fixed overhead volume variance = $15,400 Unfavorable