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The standard costs and actual costs for factory overhead for the manufacture of 2 , 7 0 0 units of actual production are as follows:

The standard costs and actual costs for factory overhead for the manufacture of 2,700 units of actual production are as follows:
Standard Costs
Fixed overhead (based on 10,000 hours)3 hours per unit at $0.79 per hour
Variable overhead
3 hours per unit at $1.90 per hour
Actual Costs
Total variable cost, $18,200
Total fixed cost, $8,200
The fixed factory overhead volume variance is
a. $1,201 favorable
b. $0
c. $1,201 unfavorable
d. $1,501 unfavorable
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