Question
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
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 | $360,000 |
| Fixed factory overhead | 104,000 | |
| Standard hours allowed for units produced: | 60,000 hours |
| a. | $26,000 unfavorable |
| b. | $14,000 unfavorable |
| c. | $12,000 favorable |
| d. | $12,000 unfavorable |
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Fundamental Accounting Principles Volume I
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
16th Canadian edition
978-1260305821
