The Standard Factory Overhead Rate Is $7

question 7

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: What is the amount of the variable factory overhead controllable variance?

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

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Definitions:

Complaint Committee

A group established within an organization to handle and investigate complaints, particularly those related to workplace issues or discrimination.

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The process of determining the moral correctness or wrongness of an action, often based on ethical principles and values.

Acceptable Conduct

The standards of behavior considered appropriate and acceptable within a particular context, such as a workplace or social setting.

Ethics

A set of standards of conduct and moral judgments that help determine right and wrong behaviour.