The following information relates to manufacturing overhead for
the Chapman Company:

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Question: The following information relates to manufacturing overhead for the Chapman Company: Standards: …
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Standards:
Total fixed factory overhead – $450,000
Estimated production – 25,000 units (100% of normal capacity)
Overhead rates are based on machine hours.
Standard hours allowed per unit produced – 2
Fixed overhead rate – $9.00 per machine hour
Variable overhead rate – $3.50 per hour

Actual:
Fixed factory overhead – $450,000
Production – 24,000 units
Variable overhead – $170,000

Required:
(a) Compute the fixed factory overhead volume variance
(b) Compute the variable factory overhead controllable
variance.
(c) Compute the total factory overhead cost variance.

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