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he standard costs and actual costs for factory overhead for the manufacture of 2,800 units of actual production are as follows: standard costs fixed overhead (based on 10,000 hours) 3 hours per unit at $0.72 per hour variable overhead 3 hours per unit at $1.99 per hour actual costs total variable cost, $17,900 total fixed cost, $7,900 the total factory overhead cost variance is

Respuesta :

The variable factory overhead variance is $1184 which is unfavourable because it is higher than the budgeted overhead

The distinction between applied overhead and real overhead is referred to as overhead variance. Only until you are aware of the period's real overhead expenses can you calculate the overhead variance. A fixed-rate and a cost driver are used to apply overhead. In essence, this is a method of forecasting overhead expenses before they arise. It is feasible to compare the actual overhead expenses with the planned projections at the conclusion of the fiscal period.

The Variable factory overhead controllable variance is calculated by the following formula:-

= (Actual Variable overheads) -  (Budgeted overheads based on standard hours)

=$17900 - (2,800 *3 * $1.99)

= $17900 - $16716

= $1184

Since the actual variable overheads are higher than the budgeted overheads, there is an unfavourable variance.

Learn more about overhead variance:

https://brainly.com/question/14190459

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