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 Standard hours allowed for units produced: The variable factory overhead controllable variance is a. $12,000 unfavorable b. $14,000 unfavorable c. $12,000 favorable Od. $26,000 unfavorable $360,000 104,000 60,000 hours

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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% 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
Standard hours allowed for units produced:
The variable factory overhead controllable variance is
a. $12,000 unfavorable
b. $14,000 unfavorable
c. $12,000 favorable
d. $26,000 unfavorable
$360,000
104,000
60,000 hours
Transcribed Image Text: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 Standard hours allowed for units produced: The variable factory overhead controllable variance is a. $12,000 unfavorable b. $14,000 unfavorable c. $12,000 favorable d. $26,000 unfavorable $360,000 104,000 60,000 hours
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