The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead) based on 100% capacity of 30,000 direct labor hours. The standard cost and the actual cost of factory overhead for the production of 5,000 units during May were as follows:

Standard:	25,000 hours at $10	$250,000
Actual:	Variable factory overhead	202,500
	Fixed factory overhead	60,000

What is the amount of the factory overhead volume variance?

Question 22 options:

	$12,500 favorable
	$10,000 unfavorable
	$12,500 unfavorable
	$10,000 favorable