The Standard Factory Overhead Rate Is $7

question 158

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% of normal 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: ​
-The fixed factory overhead volume variance is

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

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Definitions:

Lewis and Clark

Explorers Meriwether Lewis and William Clark, who led the early 19th-century expedition across the western United States to explore territories acquired in the Louisiana Purchase.

Shoshone Indian

A member of a Native American people originally from the western United States, including parts of California, Nevada, Utah, and Idaho.

Pacific Ocean

The largest and deepest of the Earth's oceanic divisions, extending from the Arctic in the north to the Southern Ocean in the south.

Sacajawea

A Lemhi Shoshone woman who is best known for her role as a guide and interpreter for the Lewis and Clark expedition in the early 1800s.