The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhead and $1.30 for fixed factory overhead) based on 100% of normal capacity of 80,000 machine hours. The standard cost and the actual cost of factory overhead for the production of 15,000 units during August were as follows:
-The fixed factory overhead volume variance is
A)$12,000 unfavorable
B)$12,000 favorable
C)$14,000 unfavorable
D)$26,000 unfavorable

Question

The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhead and $1.30 for fixed factory overhead) based on 100% of normal capacity of 80,000 machine hours. The standard cost and the actual cost of factory overhead for the production of 15,000 units during August were as follows:  ​
-The fixed factory overhead volume variance is
A)$12,000 unfavorable 
B)$12,000 favorable 
C)$14,000 unfavorable 
D)$26,000 unfavorable

Quizplus · Accepted Answer

The Answer of The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhead and $1.30 for fixed factory overhead) based on 100% of normal capacity of 80,000 machine hours. The standard cost and the actual cost of factory overhead for the production of 15,000 units during August were as follows:  ​
-The fixed factory overhead volume variance is
A)$12,000 unfavorable 
B)$12,000 favorable 
C)$14,000 unfavorable 
D)$26,000 unfavorable

The Standard Factory Overhead Rate Is $7