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Use this information to answer the question that follow. The standard costs and actual costs for factory overhead for the manufacture of 2,700 units of

Use this information to answer the question that follow.

The standard costs and actual costs for factory overhead for the manufacture of 2,700 units of actual production are as follows:

Standard Costs
Fixed overhead (based on 10,000 hours) 3 hours per unit @ $0.73 per hour
Variable overhead 3 hours per unit @ $2.09 per hour
Actual Costs
Total variable cost, $17,800
Total fixed cost, $7,800

The fixed factory overhead volume variance is

a.$1,387 unfavorable

b.$1,110 favorable

c.$1,110 unfavorable

d.$0

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