The standard fixed factory overhead rate is based on 100 capacity of 135,000 machine hours for Interile Inc The standard costs and the actual costs of factory overhead for the production of 32,000 units during March were as follows Actual Factory overhead $860,000 Standard 100,000 hours at $8 00 800,000 If there was a $70,000 unfavorable volume variance for March, what is the standard fixed factory overhead cost rate a $2 50 b $3 00 c $2 00 d $3 50

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Question: The standard fixed factory overhead rate is based on 100% capacity of 135,000 machine hours for Interile Inc. The standard costs and the actual costs

The standard fixed factory overhead rate is based on 100% capacity of 135,000 machine hours for Interile Inc. The standard costs and the actual costs of factory overhead for the production of 32,000 units during March were as follows:

Actual: Factory overhead	$860,000
Standard: 100,000 hours at $8.00	800,000

If there was a $70,000 unfavorable volume variance for March, what is the standard fixed factory overhead cost rate?

a.$2.50

b.$3.00

c.$2.00

d.$3.50

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