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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Definitions:

Fast Pathway

This refers to a rapid neural response mechanism, often discussed in the context of pain perception, where sensory information bypasses slower processing routes to elicit quick reactions.

Slow Pathway

A term often used in cardiac electrophysiology to refer to a conduction pathway in the heart that has a slower impulse transmission.

Vestibular Sense

The sensory system that contributes to balance and spatial orientation by detecting motion and gravity.

Kinesthetic Sense

The sense of body position and movement, allowing individuals to coordinate their movements accurately.