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The standard costs and actual costs for factory overhead for the manufacture of 2,800 units of actual production are as follows: Standard Costs Fixed overhead
The standard costs and actual costs for factory overhead for the manufacture of 2,800 units of actual production are as follows:
Standard Costs | |
Fixed overhead (based on 10,000 hours) | 3 hours per unit at $0.71 per hour |
Variable overhead | 3 hours per unit at $2.06 per hour |
Actual Costs | |
Total variable cost, $18,000 | |
Total fixed cost, $8,000 |
The fixed factory overhead volume variance is
a.$0
b.$909 unfavorable
c.$1,136 unfavorable
d.$909 favorable
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