The standard fixed factory overhead rate is based on 100% capacity of 120,000 machine hours for Thompson Inc.The standard costs and the actual costs of factory overhead for the production of 25,000 units during March were as follows:

If there was a $60,000 unfavorable volume variance for March,what is the standard fixed factory overhead cost rate?
A)$3.00
B)$2.50
C)$6.67
D)$0.60

Question

The standard fixed factory overhead rate is based on 100% capacity of 120,000 machine hours for Thompson Inc.The standard costs and the actual costs of factory overhead for the production of 25,000 units during March were as follows:

If there was a $60,000 unfavorable volume variance for March,what is the standard fixed factory overhead cost rate?

If there was a $60,000 unfavorable volume variance for March,what is the standard fixed factory overhead cost rate?
A)$3.00 
B)$2.50 
C)$6.67 
D)$0.60

Quizplus · Accepted Answer

The Answer of The standard fixed factory overhead rate is based on 100% capacity of 120,000 machine hours for Thompson Inc.The standard costs and the actual costs of factory overhead for the production of 25,000 units during March were as follows:

If there was a $60,000 unfavorable volume variance for March,what is the standard fixed factory overhead cost rate?
A)$3.00 
B)$2.50 
C)$6.67 
D)$0.60

The Standard Fixed Factory Overhead Rate Is Based on 100