Standard Corporation Uses a Standard Cost System ? the Fixed Factory Overhead Volume Variance Is
A) $6,000

question 122

Multiple Choice

Standard Corporation uses a standard cost system.The following information was provided for the period that just ended: $\begin{array}{ll}\text { Standard time per completed unit } & 3 \mathrm{hrs} \\\text { Actual total factory overhead } & \$ 108,000 \\\text { Fixed factory overhead } & \$ 60,000 \\\text { Standard fixed factory overhead rate } & \$ 2.00 \text { per labor hour }\\\text { Standard variable factory overhead rate } & \$ 1.50 \text { per labor hour } \\\text { Normal capacity } & 30,000 \text { hours } \\\text { Plant operated during the period } & 28,000 \text { hours } \\\text { Units completed during the period } & 9,000\end{array}$ ? The fixed factory overhead volume variance is

• A) $6,000 favorable.
• B) $3,000 favorable.
• C) $3,000 unfavorable.
• D) $6,000 unfavorable.

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Definitions:

Basal Metabolic Rate

The amount of energy expended while at rest in a neutrally temperate environment, necessary to maintain the basic functions of the body.

Total Metabolic Rate

Refers to the total amount of energy consumed by an organism to maintain its bodily functions at rest and during activity.

Leptin

A hormone produced by fat cells that helps to regulate energy balance by inhibiting hunger.

Major Mineral

Essential minerals required by the body in relatively large amounts for various physiological functions.