The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhead and $1.30 for fixed factory overhead) based on 100% of normal capacity of 80,000 machine hours. The standard cost and the actual cost of factory overhead for the production of 15,000 units during August were as follows:
-The following data are given for Bahia Company: Overhead is applied on standard labor hours.The variable factory overhead controllable variance is
A)$65 unfavorable
B)$65 favorable
C)$540 unfavorable
D)$540 favorable

Question

The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhead and $1.30 for fixed factory overhead) based on 100% of normal capacity of 80,000 machine hours. The standard cost and the actual cost of factory overhead for the production of 15,000 units during August were as follows:  ​
-The following data are given for Bahia Company:  Overhead is applied on standard labor hours.The variable factory overhead controllable variance is
A)$65 unfavorable 
B)$65 favorable 
C)$540 unfavorable 
D)$540 favorable

Quizplus · Accepted Answer

The Answer of The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhead and $1.30 for fixed factory overhead) based on 100% of normal capacity of 80,000 machine hours. The standard cost and the actual cost of factory overhead for the production of 15,000 units during August were as follows:  ​
-The following data are given for Bahia Company:  Overhead is applied on standard labor hours.The variable factory overhead controllable variance is
A)$65 unfavorable 
B)$65 favorable 
C)$540 unfavorable 
D)$540 favorable

The Standard Factory Overhead Rate Is $7