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Business, 18.12.2019 23:31 july00

The standard factory overhead rate is $10 per direct labor hour ($8 for variable factory overhead and $2

for fixed factory overhead) based on 100% capacity of 30,000 direct labor hours. the standard cost and

the actual cost of factory overhead for the production of 5,000 units during may were as follows:

standard: 25,000 hours at $10 $250,000

actual: variable factory overhead 202,500

fixed factory overhead 60,000

what is the amount of the factory overhead controllable variance?

a. $10,000 favorable

b. $2,500 unfavorable

c. $10,000 unfavorable

d. $2,500 favorable

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Answers: 1

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