The Standard Factory Overhead Rate Is $10 Per Direct Labor

question 65

Multiple Choice

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 variable factory overhead controllable variance is

• A)$10,000 favorable
• B)$2,500 unfavorable
• C)$10,000 unfavorable
• D)$2,500 favorable

---

Definitions:

News Story

A factual report on recent events or information, typically presented in newspapers, online, or on television and radio.

Spiral Of Silence Theory

A social theory which suggests that individuals have a fear of isolation, leading them to remain silent instead of voicing unpopular opinions.

Majority Viewpoint

refers to the opinion or belief held by the larger part of a group or society.

Grassroots Organization

A group or movement that uses collective action from the local level to effect change at the local, national, or international level, often relying on community involvement and volunteer-based campaigns.