The Standard Factory Overhead Rate Is $10 Per Direct Labor

question 128

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: What is the amount of the fixed factory overhead volume variance?

• A) $12,500 favorable
• B) $10,000 unfavorable
• C) $12,500 unfavorable
• D) $10,000 favorable

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Definitions:

Aspartic Acid

An amino acid with a carboxylic acid side chain, important for enzyme activity and neurotransmission, symbol Asp or D.

Neutral Form

Refers to the state of a molecule when it is not bearing a positive or negative charge, typically in the context of pH-dependent forms of molecules in solutions.

L-Serine

An α-amino acid important in biosynthesis, which serves as a building block for proteins.

Predominant Form

The most abundant or common form of a substance under specified conditions.