Question: The standard fixed factory overhead rate is based on 100% capacity of 50,000 direct labor hours. The standard costs and the actual costs for factory
The standard fixed factory overhead rate is based on 100% capacity of 50,000 direct labor hours. The standard costs and the actual costs for factory overhead for the production of 8,000 units during the current month were as follows.
| Standard: | 40,000 hours at $3 | $120,000 |
| Actual: | Factory overhead | |
| (41,000 direct labor hours) | 131,200 |
If there was a $9,000 unfavorable volume variance for December, what is the standard fixed factory overhead cost rate?
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