Answer:
Variable Factory Overhead Controllable Variance = $2700 F
Fixed Factory Overhead Volume Variance = $11,000 U
Total Factory Overhead Cost Variance = $8,300 U
Explanation:
According to the scenario, computation of the given data are as follow:-
Variable Factory Overhead Controllable Variance = Actual Variable Factory Overhead - Standard Hours × (Standard Rate - Fixed Factory Overhead Rate)
= $87,300 - 4000 × ($28 - $5.5)
= $87,300 - 4000 × $22.5
= -$2,700 (Negative shows Favorable )
Fixed Factory Overhead Volume Variance = Fixed Factory Overhead - (Factory Overhead Cost × Fixed Factory Overhead Rate)
= $33,000 - 4000 × $5.5
= $33,000 - $22,000 = $11,000 (Positive shows Unfavorable )
Total Factory Overhead Cost Variance = Actual Variable Factory Overhead + Fixed Factory Overhead - (Standard Hours × Standard Rate)
= $87,300 + $33,000 - (4,000 × $28)
= $120,300 - $112,000 = $8,300 unfavorable
