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The standard costs and actual costs for factory overhead for the manufacture of 2,600 units of actual production are as follows: Standard Costs Fixed overhead
The standard costs and actual costs for factory overhead for the manufacture of 2,600 units of actual production are as follows:
Standard Costs | |
Fixed overhead (based on 10,000 hours) | 3 hours per unit at $0.75 per hour |
Variable overhead | 3 hours per unit at $1.97 per hour |
Actual Costs | |
Total variable cost, $18,200 | |
Total fixed cost, $8,000 |
The total factory overhead cost variance is
a.$2,834 unfavorable
b.$4,484 unfavorable
c.$6,134 favorable
d.$4,484 favorable
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