The Standard Factory Overhead Rate Is $7

question 18

Multiple Choice

The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhead and $1.30 for fixed factory overhead) based on 100% capacity of 80,000 machine hours. The standard cost and the actual cost of factory overhead for the production of 15,000 units during August were as follows: What is the amount of the factory overhead volume variance?

• A) $12,000 unfavorable
• B) $12,000 favorable
• C) $14,000 unfavorable
• D) $26,000 unfavorable

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Definitions:

SWOT Analysis

A strategic planning tool used to identify an organization's Strengths, Weaknesses, Opportunities, and Threats, facilitating informed decision-making.

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The practice of disclosing information about a company's environmental performance and impact to stakeholders, often part of corporate social responsibility reports.

Strategic Analysis

The process of conducting research on the business environment and the company itself to formulate strategy.

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Issues related to the natural environment due to human activities or processes, including pollution, natural resource depletion, and climate change.