In: Accounting
Factory Overhead Cost Variances
Blumen Textiles Corporation began April with a budget for 43,000 hours of production in the Weaving Department. The department has a full capacity of 57,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of April was as follows:
Variable overhead | $107,500 |
Fixed overhead | 74,100 |
Total | $181,600 |
The actual factory overhead was $183,800 for April. The actual fixed factory overhead was as budgeted. During April, the Weaving Department had standard hours at actual production volume of 45,000 hours. 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.
a. Determine the variable factory overhead
controllable variance.
$
b. Determine the fixed factory overhead volume
variance.
$