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The standard factory overhead rate is $6.80 per machine hour ($6.20 for variable factory overhead and $0.60 for fixed factory overhead) based on 100% capacity

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The standard factory overhead rate is $6.80 per machine hour ($6.20 for variable factory overhead and $0.60 for fixed factory overhead) based on 100% capacity of 80,000 machine hours. The standard cost and the actual cost of factory overhead for the production of 15,000 units during August were as follows: Actual: Variable factory overhead Fixed factory overhead Standard hours allowed for units produced: 60,000 hours at $7.50 $360,000 104,000 450,000 What is the amount of the factory overhead volume variance? a $12,000 unfavorable b. $12,000 favorable C. $14,000 unfavorable d. $26,000 unfavorable

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