The standard fixed factory overhead rate is based on 100% capacity of 135,000 machine hours for Interile Inc.The standard costs and the actual costs of factory overhead for the production of 32,000 units during March were as follows: $$\begin{array} { l r }
\text { Actual: Factory overhead } & \$ 860,000 \
\text { Standard: } 100,000 \text { hours at } \$ 8.00 & 800,000
\end{array}$$ ? If there was a $70,000 unfavorable volume variance for March, what is the standard fixed factory overhead cost rate?
A) $2.00
B) $2.50
C) $3.00
D) $3.50

Question

The standard fixed factory overhead rate is based on 100% capacity of 135,000 machine hours for Interile Inc.The standard costs and the actual costs of factory overhead for the production of 32,000 units during March were as follows: $$\begin{array} { l r } 
\text { Actual: Factory overhead } & \$ 860,000 \
\text { Standard: } 100,000 \text { hours at } \$ 8.00 & 800,000
\end{array}$$ ? If there was a $70,000 unfavorable volume variance for March, what is the standard fixed factory overhead cost rate?
A) $2.00
B) $2.50
C) $3.00
D) $3.50

Quizplus · Accepted Answer

The Answer of The standard fixed factory overhead rate is based on 100% capacity of 135,000 machine hours for Interile Inc.The standard costs and the actual costs of factory overhead for the production of 32,000 units during March were as follows: $$\begin{array} { l r } 
\text { Actual: Factory overhead } & \$ 860,000 \
\text { Standard: } 100,000 \text { hours at } \$ 8.00 & 800,000
\end{array}$$ ? If there was a $70,000 unfavorable volume variance for March, what is the standard fixed factory overhead cost rate?
A) $2.00
B) $2.50
C) $3.00
D) $3.50

The Standard Fixed Factory Overhead Rate Is Based on 100