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:
$$\begin{array} { l l}
950,500&\text { Actun: Vurable furtary ovehead } \
84,000&\text { Fired factary overhen ad } \
420,000 &\text { Standard:35,000 hars @ } \$ 12 \
\end{array}$$ 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:
 $$\begin{array} { l l} 
950,500&\text { Actun: Vurable furtary ovehead } \
 84,000&\text { Fired factary overhen ad } \
420,000 &\text { Standard:35,000 hars @ } \$ 12 \
\end{array}$$ Determine the (a) volume variance, (b) controllable variance, and (c) total factory overhead cost variance.

Quizplus · Accepted Answer

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:
 $$\begin{array} { l l} 
950,500&\text { Actun: Vurable furtary ovehead } \
 84,000&\text { Fired factary overhen ad } \
420,000 &\text { Standard:35,000 hars @ } \$ 12 \
\end{array}$$ 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