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% of normal 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 The fixed factory overhead volume variance is

a. $12,500 favorable

b. $12,500 unfavorable

c. $10,000 unfavorable

d. $10,000 favorable

If the total revenue variance is favorable and the revenue price variance is unfavorable, then the revenue volume variance must

1. be less than the revenue price variance and be favorable
2. be equal to the revenue price variance and be favorable
3. exceed the revenue price variance and be favorable
4. be less than the revenue price variance and be unfavorable