Question Content Area

Use this information for Bonny Company to answer the question that follows.

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\mathrm{.}79$ per hour

Variable overhead $3$ hours per unit @ $$2\mathrm{.}06$ per hour

Actual Costs

Total variable overhead cost, $$18,200$

Total fixed overhead cost, $$7,800$

The fixed factory overhead volume variance is

a$.$ $$1,975$ unfavorable

b$.$ $$0$

c$.$ $$1,580$ favorable

d$.$ $$1,580$ unfavorable