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:

Determine the (a)volume variance, (b)controllable variance,and (c)total factory overhead cost variance.

Question

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:
  
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:
  
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