The standard factory overhead rate is $10 per direct labor hour ($8 for variable
ID: 2358965 • Letter: T
Question
The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead) based on 100% capacity of 30,000 direct labor hours. The standard cost and the actual cost of factory overhead for the production of 5,000 units during May were as follows: Standard: 25,000 hours at $10 $250,000 Actual: Variable factory overhead $202,500Fixed factory overhead 60,000 What is the amount of the factory overhead volume variance? a. $10,000 unfavorable
b. $12,500 unfavorable
c. $10,000 favorable
d. $12,500 favorable The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead) based on 100% capacity of 30,000 direct labor hours. The standard cost and the actual cost of factory overhead for the production of 5,000 units during May were as follows: Standard: 25,000 hours at $10 $250,000 Actual: Variable factory overhead $202,500
Fixed factory overhead 60,000 What is the amount of the factory overhead volume variance? a. $10,000 unfavorable
b. $12,500 unfavorable
c. $10,000 favorable
d. $12,500 favorable The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead) based on 100% capacity of 30,000 direct labor hours. The standard cost and the actual cost of factory overhead for the production of 5,000 units during May were as follows: Standard: 25,000 hours at $10 $250,000 Actual: Variable factory overhead $202,500
Fixed factory overhead 60,000 What is the amount of the factory overhead volume variance? Standard: 25,000 hours at $10 $250,000 Actual: Variable factory overhead $202,500
Fixed factory overhead 60,000
Explanation / Answer
a
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