The Standard Factory Overhead Rate Is $7

question 143

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% 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:

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

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