The standard factory overhead rate of Quaker Inc.is $10 per direct labor hour ($8 for variable factory overhead and $2 for 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 5,000 units during May were as follows: $$\begin{array} { l l r }
\text { Standard: } & 25,000 \text { hours at } \$ 10 & \$ 250,000 \
\text { Actual: } & \text { Variable factory overhead } & 202,500 \
& \text { Fixed factory overhead } & 60,000
\end{array}$$ ? What is the amount of the variable factory overhead controllable variance?
A) $10,000 favorable
B) $2,500 unfavorable
C) $10,000 unfavorable
D) $2,500 favorable

Question

The standard factory overhead rate of Quaker Inc.is $10 per direct labor hour ($8 for variable factory overhead and $2 for 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 5,000 units during May were as follows: $$\begin{array} { l l r } 
\text { Standard: } & 25,000 \text { hours at } \$ 10 & \$ 250,000 \
\text { Actual: } & \text { Variable factory overhead } & 202,500 \
& \text { Fixed factory overhead } & 60,000
\end{array}$$ ? What is the amount of the variable factory overhead controllable variance?
A) $10,000 favorable
B) $2,500 unfavorable
C) $10,000 unfavorable
D) $2,500 favorable

Quizplus · Accepted Answer

The Answer of The standard factory overhead rate of Quaker Inc.is $10 per direct labor hour ($8 for variable factory overhead and $2 for 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 5,000 units during May were as follows: $$\begin{array} { l l r } 
\text { Standard: } & 25,000 \text { hours at } \$ 10 & \$ 250,000 \
\text { Actual: } & \text { Variable factory overhead } & 202,500 \
& \text { Fixed factory overhead } & 60,000
\end{array}$$ ? What is the amount of the variable factory overhead controllable variance?
A) $10,000 favorable
B) $2,500 unfavorable
C) $10,000 unfavorable
D) $2,500 favorable

The Standard Factory Overhead Rate of Quaker Inc ? What Is the Amount of the Variable Factory Overhead