Question: Use this information to answer the question that follow. The standard costs and actual costs for factory overhead for the manufacture of 2,600 units of
Use this information to answer the question that follow.
The standard costs and actual costs for factory overhead for the manufacture of 2,600 units of actual production are as follows:
| Standard Costs | |
| Fixed overhead (based on 10,000 hours) | 3 hours per unit @ $0.74 per hour |
| Variable overhead | 3 hours per unit @ $1.92 per hour |
| Actual Costs | |
| Total variable cost, $18,200 | |
| Total fixed cost, $8,100 | |
The total factory overhead cost variance is
a.$3,224 unfavorable
b.$4,852 unfavorable
c.$4,852 favorable
d.$6,480 favorable
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