8

The standard costs and actual costs for factory overhead for the manufacture of 3,000 units of actual production are as follows:

Standard Costs
Fixed overhead (based on 10,000 hours)	3 hours per unit @ $0.79 per hour
Variable overhead	3 hours per unit @ $1.92 per hour
Actual Costs
Total variable cost, $18,000
Total fixed cost, $8,200

The total factory overhead cost variance is

a.$2,300 favorable

b.$1,510 unfavorable

c.$1,510 favorable

d.$720 unfavorable