The standard fixed factory overhead rate is based on 100% capacity of 50,000 direct labor hours.The standard costs and the actual costs for factory overhead for the production of 8,000 units during the current month were as follows: $$\begin{array} { l l l }
\text { Standard: } & 40,000 \text { hours at } \$ 3 & \$ 120,000 \
\text { Actual: } & \text { Factory overhead } & \
& ( 41,000 \text { direct labor hours) } & 131,200
\end{array}$$ ? If there was a $9,000 unfavorable volume variance for December, what is the standard fixed factory overhead cost rate?
A) $1.00
B) $0.90
C) $2.40
D) $0.80

Question

The standard fixed factory overhead rate is based on 100% capacity of 50,000 direct labor hours.The standard costs and the actual costs for factory overhead for the production of 8,000 units during the current month were as follows: $$\begin{array} { l l l } 
\text { Standard: } & 40,000 \text { hours at } \$ 3 & \$ 120,000 \
\text { Actual: } & \text { Factory overhead } & \
& ( 41,000 \text { direct labor hours) } & 131,200
\end{array}$$ ? If there was a $9,000 unfavorable volume variance for December, what is the standard fixed factory overhead cost rate?
A) $1.00
B) $0.90
C) $2.40
D) $0.80

Quizplus · Accepted Answer

The Answer of The standard fixed factory overhead rate is based on 100% capacity of 50,000 direct labor hours.The standard costs and the actual costs for factory overhead for the production of 8,000 units during the current month were as follows: $$\begin{array} { l l l } 
\text { Standard: } & 40,000 \text { hours at } \$ 3 & \$ 120,000 \
\text { Actual: } & \text { Factory overhead } & \
& ( 41,000 \text { direct labor hours) } & 131,200
\end{array}$$ ? If there was a $9,000 unfavorable volume variance for December, what is the standard fixed factory overhead cost rate?
A) $1.00
B) $0.90
C) $2.40
D) $0.80

The Standard Fixed Factory Overhead Rate Is Based on 100