The Standard Factory Overhead Rate Is $7

question 155

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 fixed factory overhead volume variance is

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

---

Definitions:

Miliaria

A skin condition, often referred to as heat rash, characterized by small, itchy bumps caused by blocked sweat ducts during hot and humid conditions.

Impetigo

A highly contagious bacterial skin infection, characterized by red sores, blistering, and a honey-colored crust.

Streptococcus

A genus of coccus (spherical) bacteria, many of which are responsible for diseases in humans and animals.

Bx

Biopsy, a medical test involving the extraction of sample cells or tissues for examination to determine the presence or extent of a disease.