The Standard Factory Overhead Rate Is $7 ? What Is the Amount of the Variable Factory Overhead

question 56

Multiple Choice

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% 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: $$\begin{array} { l l r } \text { Actual: } & \text { Variable factory overhead } & \$ 360,000 \\& \text { Fixed factory overhead } & 104,000 \\\text { Standard: } & 60,000 \text { hours at } \$ 7.50 & 450,000\end{array}$$ ? What is the amount of the variable factory overhead controllable variance?

• A) $12,000 unfavorable
• B) $12,000 favorable
• C) $14,000 unfavorable
• D) $26,000 unfavorable

---

Definitions:

Leadership Training

Educational programs or activities designed to enhance leadership skills and qualities.

Roles

The expected behavior patterns attributed to someone occupying a given position in a social unit.

Responsibilities

Duties, tasks, or obligations that an individual is expected or required to fulfill.

Directive Leadership

A leadership style characterized by giving clear, direct instructions and closely supervising tasks to ensure compliance and achieve goals.