Question: I could use some help on this question. I answered c. $560 unfavorable, but it was wrong. If someone could explain to me how to
I could use some help on this question. I answered c. $560 unfavorable, but it was wrong. If someone could explain to me how to solve this, that would be great. Thank you.
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 at $0.70 per hour
Variable overhead 3 hours per unit at $2.06 per hour
Actual Costs
Total variable cost, $17,900
Total fixed cost, $8,000
The fixed factory overhead volume variance is
a.$560 favorable
b.$700 unfavorable
c.$560 unfavorable
d.$0
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