The standard overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 fixed factory overhead) based on 100% capacity of 30,000 direct labor hours. The standard cost and the actual cost of factory overhead for the production of 5000 units during May were as follows:
Standard: 25,000 hours @ $10 $250,000
Actual: Variable factory overhead 202,500
Fixed factory overhead 60,000
A) What is the amount of the factory overhead volume variance?
B) What is the amount of the factory overhead controllable variance?