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:

Future Sales Revenue

The anticipated income a company expects to receive from its future sales activities.

Customer Number

A unique identifier assigned to each customer for the purpose of tracking transactions and accounts in a business's record system.

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An agreement or exchange between two parties that results in the transfer of goods or services for monetary value.

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