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Factory Overhead Variance Corrections The data related to Shunda Enterprises Inc.’s factory overhead cost for the production of 50,000 units of product are as follows: Actual: Variable factory overhead $173,100 Fixed factory overhead 125,900 Standard: 76,000 hrs. at $4 ($2.30 for variable factory overhead) 304,000 Productive capacity at 100% of normal was 74,900 hours, and the factory overhead cost budgeted at the level of 76,000 standard hours was $302,200. Based on these data, the chief cost accountant prepared the following variance analysis: Variable factory overhead controllable variance: Actual variable factory overhead cost incurred $173,100 Budgeted variable factory overhead for 76,000 hours 174,800 Variance—favorable $(1,700) Fixed factory overhead volume variance: Normal productive capacity at 100% 74,900 hrs. Standard for amount produced 76,000 Productive capacity not used 1,100 hrs. Standard variable factory overhead rate x $4 Variance—unfavorable 4,400 Total factory overhead cost variance—unfavorable $2,700 Compute the following to assist you in identifying the errors in the factory overhead cost variance analysis. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required. Variance Amount Favorable/Unfavorable Variable Factory Overhead Controllable Variance $fill in the blank 1 Favorable Fixed Factory Overhead Volume Variance $fill in the blank 3 Favorable Total Factory Overhead Cost Variance $fill in the blank 5 Favorable

          Factory Overhead Variance Corrections
The data related to Shunda Enterprises Inc.’s factory overhead cost for the production of 50,000 units of product are as follows:
Actual:
Variable factory overhead
$173,100
Fixed factory overhead
125,900
Standard:
76,000 hrs. at $4 ($2.30 for variable factory overhead)
304,000
Productive capacity at 100% of normal was 74,900 hours, and the factory overhead cost budgeted at the level of 76,000 standard hours was $302,200. Based on these data, the chief cost accountant prepared the following variance analysis:
Variable factory overhead controllable variance:
Actual variable factory overhead cost incurred
$173,100
Budgeted variable factory overhead for 76,000 hours
174,800
   Variance—favorable
$(1,700)
Fixed factory overhead volume variance:
Normal productive capacity at 100%
74,900
hrs.
Standard for amount produced
76,000
Productive capacity not used
1,100
hrs.
Standard variable factory overhead rate
x $4
   Variance—unfavorable
4,400
Total factory overhead cost variance—unfavorable
$2,700
Compute the following to assist you in identifying the errors in the factory overhead cost variance analysis. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required.
Variance
Amount
Favorable/Unfavorable
Variable Factory Overhead Controllable Variance
$fill in the blank 1
Favorable 
Fixed Factory Overhead Volume Variance
$fill in the blank 3
Favorable 
Total Factory Overhead Cost Variance
$fill in the blank 5
Favorable

Added by Andrea P.

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