The Standard Fixed Factory Overhead Rate Is Based on 100

question 13

Multiple Choice

The standard fixed factory overhead rate is based on 100% capacity of 50,000 direct labor hours. The standard costs and the actual costs for factory overhead for the production of 8,000 units during the current month were as follows: $\begin{array}{lll}\$ 120,000 & 40,000 \text { hours at } \$ 3 & \text { Standard: } \\& \text { Factory overhead } & \text { Actual } \\131,200 & \text { (41,000 direct labor hours) } &\end{array}$

If there was a $9,000 unfavorable volume variance for December, what is the standard fixed factory overhead cost rate?

• A) $1.00
• B) $0.90
• C) $2.40
• D) $0.80

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Definitions:

Hygiene Factors

Factors related to the work environment that can lead to dissatisfaction if absent, but do not necessarily motivate if present, according to Herzberg's motivation-hygiene theory.

Job Enrichment

The process of making a job more rewarding, fulfilling, and satisfying by adding more meaningful tasks and duties.

Sense of Purpose

The feeling of having clear goals, direction, and motivation in life, contributing to overall well-being and satisfaction.

Prosocial Motivation

The desire to expend effort to help other people.