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: $\begin{array}{lll}
\$ 120,000 & 40,000 \text { hours at } \$ 3 & \text { Standard: } \
& \text { Factory overhead } & \text { Actual } \
131,200 & \text { (41,000 direct labor hours) } &
\end{array}$

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: $\begin{array}{lll}
\$ 120,000 & 40,000 \text { hours at } \$ 3 & \text { Standard: } \
& \text { Factory overhead } & \text { Actual } \
131,200 & \text { (41,000 direct labor hours) } &
\end{array}$

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: $\begin{array}{lll}
\$ 120,000 & 40,000 \text { hours at } \$ 3 & \text { Standard: } \
& \text { Factory overhead } & \text { Actual } \
131,200 & \text { (41,000 direct labor hours) } &
\end{array}$

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