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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