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The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhead and $1.30 for fixed factory overhead) based on 100%
The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhead and $1.30 for fixed factory overhead) based on 100% of normal 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 $360,000 104,000 Standard hours allowed for units produced: 60,000 hours What is the amount of the fixed factory overhead volume variance? O a. $14,000 unfavorable O b. $26,000 unfavorable Oc. $12,000 favorable O d. $12,000 unfavorable
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