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The Standard Factory Overhead Rate Is $10 Per Direct Labor

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The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead) based on 100% of normal capacity of 30,000 direct labor hours. The standard cost and the actual cost of factory overhead for the production of 5,000 units during May were as follows: The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead)  based on 100% of normal capacity of 30,000 direct labor hours. The standard cost and the actual cost of factory overhead for the production of 5,000 units during May were as follows:   ​ -The fixed factory overhead volume variance is A) $12,500 favorable B) $10,000 unfavorable C) $12,500 unfavorable D) $10,000 favorable
-The fixed factory overhead volume variance is


Definitions:

Moderate

A term indicating a middle or average degree of intensity, quality, or quantity.

Circumference

The linear distance around the edge of a circle or circular object.

Weight

A measure of the gravitational force exerted on an object, typically measured in units like kilograms or pounds.

Nonlinear

Not forming a straight line; describes relationships in which change in one quantity does not produce a proportional change in another.

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