F productive capacity of 100% was 20,000 hours and the total factory overhead cost budgeted at the level of 19,500 standard hours was $394,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $8.00 per hour. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Controllable Variance = $6,000 Unfavorable

Volume Variance = $4000 Unfavorable

Factory overhead cost variance = $10,000 Unfavorable

Explanation:

Controllable Variance = (Budgeted Factory Variable Overhead - Actual Factory Variable Overhead)

= ($234,000 - $240,000)

= $6,000 Unfavorable

Budgeted Factory Variable Overhead = ($394,000 - $160,000)

= $234,000

Volume Variance = (Standard Hours for Actual unit Produced - Standard Hour for normal Capacity) Fixed Factory Overhead)

=(19,500-20,000) × $8

= $4,000 Unfavorable

Controllable Variance = $6,000 Unfavorable

Volume Variance$4000 Unfavorable

Factory overhead cost variance =  Controllable Variance + Volume Variance

= $6,000 + $4,000

= $10,000 Unfavorable

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