The standard fixed factory overhead rate is based on 100% capacity of 50,000 direct labor hours.The standard costs and the actual costs for factory overhead for the production of 8,000 units during the current month were as follows:

If there was a $9,000 unfavorable volume variance for December,what is the standard fixed factory overhead cost rate?
A)$1.00
B)$0.90
C)$2.40
D)$0.80

Question

The standard fixed factory overhead rate is based on 100% capacity of 50,000 direct labor hours.The standard costs and the actual costs for factory overhead for the production of 8,000 units during the current month were as follows:

If there was a $9,000 unfavorable volume variance for December,what is the standard fixed factory overhead cost rate?

If there was a $9,000 unfavorable volume variance for December,what is the standard fixed factory overhead cost rate?
A)$1.00 
B)$0.90 
C)$2.40 
D)$0.80

Quizplus · Accepted Answer

The Answer of The standard fixed factory overhead rate is based on 100% capacity of 50,000 direct labor hours.The standard costs and the actual costs for factory overhead for the production of 8,000 units during the current month were as follows:

If there was a $9,000 unfavorable volume variance for December,what is the standard fixed factory overhead cost rate?
A)$1.00 
B)$0.90 
C)$2.40 
D)$0.80

The Standard Fixed Factory Overhead Rate Is Based on 100