Question: 21. Use this information to answer the question that follow. The standard costs and actual costs for factory overhead for the manufacture of 3,000 units

21.

Use this information to answer the question that follow.

The standard costs and actual costs for factory overhead for the manufacture of 3,000 units of actual production are as follows:

Standard Costs
Fixed overhead (based on 10,000 hours) 3 hours per unit @ $0.75 per hour
Variable overhead 3 hours per unit @ $2.01 per hour
Actual Costs
Total variable cost, $18,200
Total fixed cost, $7,800

The fixed factory overhead volume variance is

a.$600 unfavorable

b.$0

c.$600 favorable

d.$750 unfavorable

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