The standard factory overhead rate is $12 per machine hour ($10 for variable factory overhead and $2 for fixed factory overhead) based on 100% capacity of 42,000 machine hours.The standard cost and the actual cost of factory overhead for the production of 2,000 units were as follows: $\begin{array}{lr}
\text { Actual: Variable factory overhead } & \$ 350,500 \
\text { Fixed factory overhead } & 84,000 \
\text { Standard: } 35,000 \text { hours } @ \$ 12 & 420,000
\end{array}$ ?
Determine the (a) volume variance, (b) controllable variance, and (c) total factory overhead cost variance.

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The Answer of The standard factory overhead rate is $12 per machine hour ($10 for variable factory overhead and $2 for fixed factory overhead) based on 100% capacity of 42,000 machine hours.The standard cost and the actual cost of factory overhead for the production of 2,000 units were as follows: $\begin{array}{lr}
\text { Actual: Variable factory overhead } & \$ 350,500 \
\text { Fixed factory overhead } & 84,000 \
\text { Standard: } 35,000 \text { hours } @ \$ 12 & 420,000
\end{array}$ ?
Determine the (a) volume variance, (b) controllable variance, and (c) total factory overhead cost variance.

The Standard Factory Overhead Rate Is $12 Per Machine Hour