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The standard costs and actual costs for factory overhead for the manufacture of 2,729 units of actual production are as follows: Standard Costs Fixed overhead
The standard costs and actual costs for factory overhead for the manufacture of 2,729 units of actual production are as follows:
Standard Costs
Fixed overhead (based on 10,000 units) 3 hours @ $0.80 per hour
Variable overhead 3 hours @ $1.90 per hour
Actual Costs
Total variable cost, $17,978
Total fixed cost, $8,082
Determine the amount of fixed factory overhead variance.
Select the correct answer.
a. $1,532 favorable
b. $1,532 unfavorable
c. $3,955 unfavorable
d. $2,423 unfavorable
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