Question

Calculator 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% of normal 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:

Answer 1

The amount of the factory overhead volume variance is $10,000 unfavorable. The standard cost of factory overhead is 25,0000 hours at $10 so we will get $250,000 and the actual cost of variable factory overhead is $202,500 and fixed factory overhead is 60,000. The answer in this question is $10,000 unfavorable.