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The standard costs and actual costs for factory overhead for the manufacture of 2,500units of actual production are as follows: Standard Costs Line Item Description

The standard costs and actual costs for factory overhead for the manufacture of 2,500units of actual production are as follows:

Standard Costs
Line Item Description Value
Fixed overhead (based on 10,000 hours) 3 hours per unit at $0.71 per hour
Variable overhead 3 hours per unit at $1.95 per hour

Actual Costs Total variable cost, $18,000 Total fixed cost, $7,800

The total factory overhead cost variance is

a.$5,150 favorable

b.$5,150 unfavorable

c.$6,925 favorable

d.$3,375 unfavorable

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