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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
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 @ $0.79 per hour |
Variable overhead | 3 hours per unit @ $1.98 per hour |
Actual Costs | |
Total variable cost, $17,800 | |
Total fixed cost, $7,900 |
The amount of the fixed factory overhead volume variance is
a.$1,580 favorable
b.$0
c.$1,580 unfavorable
d.$1,975 unfavorable
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