Standard Corporation Uses a Standard Cost System The Fixed Factory Overhead Volume Variance Is
A) $6,000 Favorable

question 24

Multiple Choice

Standard Corporation uses a standard cost system. The following information was provided for the period that just ended: $\begin{array}{ll}3 \text { hrs. } & \text { Stanchard time per completed unit } \\\$ 108,000 & \text { Actual total factory overhe ad } \\\$ 60,000 & \text { Fixed factory overhead } \\\$ 2.00 \text { per labor hour } & \text { Standard fixed factory overhead rate } \\30,000 \text { hours } & \text { Standard variable factory overhe ad rate } \\28,000 \text { hours } & \text { Normal capacity } \\9,000 & \text { Plant operated during the period } \\\end{array}$
The fixed factory overhead volume variance is

• A) $6,000 favorable.
• B) $3,000 favorable.
• C) $3,000 unfavorable.
• D) $6,000 unfavorable.

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