Ninon Inc. is into a garment industry. One of Ninon Inc.'s sectors produces t-shirts. The standard cost per t-shirt includes direct materials of $5, direct labor of $0.5, and factory overhead of $3.5. Determine the total standard cost for 500 t-shirts.

a.$4,500

b.$2,750

c.$4,250

d.$2,500

The difference between the applied overhead and the budgeted overhead is the _____.

a.variable factory overhead controllable variance

b.fixed factory overhead volume variance

c.total factory overhead quantity variance

d.total factory overhead cost variance

Calculate the fixed factory overhead volume variance from the following information.

Standard hours for 100% of normal capacity2,500 direct labor hoursStandard hours for actual units produced1,800 direct labor hoursFixed factory overhead rate$1.60

a.$1,600 favorable variance

b.$1,120 unfavorable variance

c.$900 favorable variance

d.$1,000 unfavorable variance