Use this information to answer the questions that follow.

The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead) based on 100% of normal 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:

-What is the fixed factory overhead volume variance?
A) $12,500 favorable
B) $10,000 unfavorable
C) $12,500 unfavorable
D) $10,000 favorable

Question

Use this information to answer the questions that follow.
​
The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead) based on 100% of normal 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:
​​
 
-What is the fixed factory overhead volume variance?
A) $12,500 favorable 
B) $10,000 unfavorable 
C) $12,500 unfavorable 
D) $10,000 favorable

Quizplus · Accepted Answer

The Answer of Use this information to answer the questions that follow.
​
The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead) based on 100% of normal 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:
​​
 
-What is the fixed factory overhead volume variance?
A) $12,500 favorable 
B) $10,000 unfavorable 
C) $12,500 unfavorable 
D) $10,000 favorable

Use This Information to Answer the Questions That Follow