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

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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 at 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,
- 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               | $      |                       |
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 at 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, - 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 | $ | |
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