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% 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: $\begin{array}{lll}
\$ 360,000 & \text { Variable factory overhe ad } & \text { Actual } \
104,000 & \text { Fixed factory overhead } & \
450,000 & 60,000 \text { hours at } \$ 7.50 & \text { Standard: }
\end{array}$
What is the amount of the fixed factory overhead volume variance?
A) $26,000 unfavorable
B) $12,000 favorable
C) $26,000 favorable
D) $12,000 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% 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: $\begin{array}{lll}
\$ 360,000 & \text { Variable factory overhe ad } & \text { Actual } \
104,000 & \text { Fixed factory overhead } & \
450,000 & 60,000 \text { hours at } \$ 7.50 & \text { Standard: }
\end{array}$
 What is the amount of the fixed factory overhead volume variance?
A) $26,000 unfavorable
B) $12,000 favorable
C) $26,000 favorable
D) $12,000 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% 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: $\begin{array}{lll}
\$ 360,000 & \text { Variable factory overhe ad } & \text { Actual } \
104,000 & \text { Fixed factory overhead } & \
450,000 & 60,000 \text { hours at } \$ 7.50 & \text { Standard: }
\end{array}$
 What is the amount of the fixed factory overhead volume variance?
A) $26,000 unfavorable
B) $12,000 favorable
C) $26,000 favorable
D) $12,000 unfavorable

The Standard Factory Overhead Rate Is $7 What Is the Amount of the Fixed Factory Overhead Volume