The Standard Fixed Factory Overhead Rate Is Based on 100

question 52

Multiple Choice

The standard fixed factory overhead rate is based on 100% capacity of 120,000 machine hours for Thompson Inc.The standard costs and the actual costs of factory overhead for the production of 25,000 units during March were as follows:

If there was a $60,000 unfavorable volume variance for March,what is the standard fixed factory overhead cost rate?

• A)$3.00
• B)$2.50
• C)$6.67
• D)$0.60

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