Calculate the total factory overhead cost variance using the above information:
A) $4,866.75 Unfavorable
B) $4,866.75 Favorable
C) $8,981.75 Favorable
D) $8,981.75 Unfavorable

Question

Calculate the total factory overhead cost variance using the above information:
A) $4,866.75 Unfavorable 
B) $4,866.75 Favorable 
C) $8,981.75 Favorable 
D) $8,981.75 Unfavorable

Quizplus · Accepted Answer

Total Factory Overhead Cost Variance = Actual Overhead Costs - Standard Overhead Costs

Actual Overhead Costs = $132,570.00 + $5,283.75 + $3,170.25 = $141,024.00

Standard Overhead Costs = ($13.00 x 10,800 hours) + ($7.00 x 11,250 machine hours) = $140,042.25

Total Factory Overhead Cost Variance = $141,024.00 - $140,042.25 = $981.75 Unfavorable

Therefore, the correct answer is D, $8,981.75 Unfavorable.

Calculate the Total Factory Overhead Cost Variance Using the Above