< The standard costs and actual costs for factory overhead for the manufacture of 2,700 units of actual production are as follows: Standard Costs 3 hours per unit at $0.77 per hour 3 hours per unit at $1.95 per hour Fixed overhead (based on 10,000 hours) Variable overhead Actual Costs Total variable cost, $17,900 Total fixed cost, $8,200 The variable factory overhead controllable variance is Oa. $2,105 favorable Ob. $1,684 favorable Oc. $2,105 unfavorable Od. so

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 20E: Calculating amount of factory overhead applied to work in process The overhead application rate for...
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The standard costs and actual costs for factory overhead for the manufacture of 2,700 units of actual production are as follows:
Standard Costs
3 hours per unit at $0.77 per hour
3 hours per unit at $1.95 per hour
Fixed overhead (based on 10,000 hours)
Variable overhead
Actual Costs
Total variable cost, $17,900
Total fixed cost, $8,200
The variable factory overhead controllable variance is
Oa. $2,105 favorable
Ob. $1,684 favorable
Oc. $2,105 unfavorable
Od. so
Transcribed Image Text:The standard costs and actual costs for factory overhead for the manufacture of 2,700 units of actual production are as follows: Standard Costs 3 hours per unit at $0.77 per hour 3 hours per unit at $1.95 per hour Fixed overhead (based on 10,000 hours) Variable overhead Actual Costs Total variable cost, $17,900 Total fixed cost, $8,200 The variable factory overhead controllable variance is Oa. $2,105 favorable Ob. $1,684 favorable Oc. $2,105 unfavorable Od. so
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