The standard costs and actual costs for factory overhead for the manufacture of 2,600 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours per unit at $0.72 per hour Variable overhead 3 hours per unit at $2.08 per hour Actual Costs Total variable cost, $17,800 Total fixed cost, $8,100 The fixed factory overhead volume variance is Oa. $1,267 favorable O b. $1,584 unfavorable O c. 50 O d. $1,267 unfavorable

The standard costs and actual costs for factory overhead for the manufacture of 2,600 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours per unit at $0.72 per hour Variable overhead 3 hours per unit at $2.08 per hour Actual Costs Total variable cost, $17,800 Total fixed cost, $8,100 The fixed factory overhead volume variance is Oa. $1,267 favorable O b. $1,584 unfavorable O c. 50 O d. $1,267 unfavorable

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 12PA: ABC Inc. spent a total of $48,000 on factory overhead. Of this, $28,000 was fixed overhead. ABC Inc....

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