Chapter 8, Problem 15E

Factory overhead cost variances

The following data relate to factory overhead cost for the production of 10,000 computers:

If productive capacity of 100% was 15,000 hours and the total factory overhead cost budgeted at the level of 14,000 standard hours was $356,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $6.00 per hour.