If the standard to produce a given amount of product is 12,000hours at a factory

Question

If the standard to produce a given amount of product is 12,000hours at a factory overhead rate of $5 ($3 fixed, $2 variable),actual variable factory overhead was $26,400, actual fixed factoryoverhead was $45,000, and 100% of productive capacity is 15,000hours, the volume variance was $2,400 unfavorable.
a. True b. False If the standard to produce a given amount of product is 12,000hours at a factory overhead rate of $5 ($3 fixed, $2 variable),actual variable factory overhead was $26,400, actual fixed factoryoverhead was $45,000, and 100% of productive capacity is 15,000hours, the volume variance was $2,400 unfavorable.
a. True b. False

Explanation / Answer

Answer is B False VOLUME VARIANCE IS $9000 F (12000 hours X 3 - $45,000)

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