Factory Overhead Cost Variances The following data relate to factory overhead cost for the production of 6,000 computers: Actual: Variable factory overhead Fixed factory overhead Standard: 6,000 hrs. at $20.00 $93,100 40,000 120,000 If productive capacity of 100% was 10,000 hours and the total factory overhead cost budgeted at the level of 6,000 standard hours was $136,000, determine the variable factory overhead Controllable Variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $4.00 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 Controllable variance 26,900 X Favorable Volume variance 8,000 X Unfavorable > Total factory overhead cost variance $ 34,900 X Unfavorable

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
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Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 12PA: ABC Inc. spent a total of $48,000 on factory overhead. Of this, $28,000 was fixed overhead. ABC Inc....
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Factory Overhead Cost Variances
The following data relate to factory overhead cost for the production of 6,000 computers:
Actual: Variable factory overhead
Fixed factory overhead
Standard: 6,000 hrs. at $20.00
$93,100
40,000
120,000
If productive capacity of 100% was 10,000 hours and the total factory overhead cost budgeted at the level of 6,000 standard hours was $136,000, determine the variable factory overhead
Controllable Variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $4.00 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
Controllable variance
26,900 X
Favorable
Volume variance
8,000 X Unfavorable
>
Total factory overhead cost variance $
34,900 X Unfavorable
Transcribed Image Text:Factory Overhead Cost Variances The following data relate to factory overhead cost for the production of 6,000 computers: Actual: Variable factory overhead Fixed factory overhead Standard: 6,000 hrs. at $20.00 $93,100 40,000 120,000 If productive capacity of 100% was 10,000 hours and the total factory overhead cost budgeted at the level of 6,000 standard hours was $136,000, determine the variable factory overhead Controllable Variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $4.00 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 Controllable variance 26,900 X Favorable Volume variance 8,000 X Unfavorable > Total factory overhead cost variance $ 34,900 X Unfavorable
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