The Standard Factory Overhead Rate of Quaker Inc Refer to the Information Provided for Quaker Inc

question 121

Multiple Choice

The standard factory overhead rate of Quaker Inc. is $10 per direct labor hour ($8 for variable factory overhead and $2 for fixed factory overhead) based on 100% capacity of 30,000 direct labor hours. The standard cost and the actual cost of factory overhead for the production of 5,000 units during May were as follows: $\begin{array}{lll}\$ 250,000 & 25,000 \text { hours at } \$ 10 & \text { Standard } \\202,500 & \text { Variable factory overhead } & \text { Actual: } \\60,000 & \text { Fixed factory overhead } &\end{array}$ Refer to the information provided for Quaker Inc. What is the amount of the fixed factory overhead volume variance?

• A) $12,500 favorable
• B) $10,000 unfavorable
• C) $12,500 unfavorable
• D) $10,000 favorable

---

Definitions:

Tumor Removal

A medical procedure to eliminate a tumor from the body, often performed to treat cancer.

Thinking Tasks

Activities or challenges that require intellectual effort and cognitive processing to solve problems or make decisions.

Performance

The act of carrying out a task or function, often evaluated in terms of effectiveness, efficiency, or skill.

Creative Insights

Sudden realizations or understanding that provide unique problem-solving ideas.