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The standard costs and actual costs for factory overhead for the manufacture of 2,900 units of actual production are as follows: Standard Costs Fixed overhead

  1. The standard costs and actual costs for factory overhead for the manufacture of 2,900 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 @ $1.99 per hour
    Actual Costs
    Total variable cost, $17,800
    Total fixed cost, $7,800

    The amount of the fixed factory overhead volume variance is

    a.$1,027 unfavorable

    b.$822 favorable

    c.$0

    d.$822 unfavorable

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