The Standard Factory Overhead Rate Is $12 Per Machine Hour

question 100

Essay

The standard factory overhead rate is $12 per machine hour ($10 for variable factory overhead and $2 for fixed factory overhead) based on 100% capacity of 42,000 machine hours. The standard cost and the actual cost of factory overhead for the production of 2,000 units were as follows:
$$\begin{array} { l l} 950,500&\text { Actun: Vurable furtary ovehead } \\ 84,000&\text { Fired factary overhen ad } \\420,000 &\text { Standard:35,000 hars @ } \$ 12 \\\end{array}$$ Determine the (a) volume variance, (b) controllable variance, and (c) total factory overhead cost variance.

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