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30. The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: Standard Costs Fixed
30.
The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows:
Standard Costs | |
Fixed overhead (based on 10,000 hours) | 3 hours per unit @ $0.80 per hour |
Variable overhead | 3 hours per unit @ $2.00 per hour |
Actual Costs | |
Total variable cost, $18,000 | |
Total fixed cost, $8,000 |
The amount of the total factory overhead cost variance is
a.$5,000 unfavorable
b.$5,000 favorable
c.$2,000 favorable
d.$2,500 unfavorable
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