The Standard Factory Overhead Rate Is $7

question 142

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 following data are given for Bahia Company: Overhead is applied on standard labor hours.The variable factory overhead controllable variance is

• A)$65 unfavorable
• B)$65 favorable
• C)$540 unfavorable
• D)$540 favorable

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