The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) Variable overhead Actual Costs Total variable cost, $18,200 Total fixed cost, $7,900 3 hours per unit at $0.74 per hour 3 hours per unit at $1.98 per hour The variable factory overhead controllable variance is O a. $3,350 unfavorable Ob. So O c. $3,350 favorable O d. $2,680 favorable

The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) Variable overhead Actual Costs Total variable cost, $18,200 Total fixed cost, $7,900 3 hours per unit at $0.74 per hour 3 hours per unit at $1.98 per hour The variable factory overhead controllable variance is O a. $3,350 unfavorable Ob. So O c. $3,350 favorable O d. $2,680 favorable

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Description: The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows:Standard CostsFixed overhead (based on 10,000 hours)Variable overheadActual CostsTotal variable cost, $18,200Total fixed

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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ABC Inc. spent a total of $48,000 on factory overhead. Of this, $28,000 was fixed overhead. ABC Inc. had budgeted $27,000 for fixed overhead. Actual machine hours were 5.000. Standard hours for units made were 4,800. The standard variable overhead rate was $4.10. What is the variable overhead rate variance?
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