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Question - The standard costs and actual costs for factory overhead for the manufacture of 2,700 units of actual production are as follows:
Standard Costs
Fixed overhead (based on 10,000 hours) 3 hours per unit @ $0.72 per hour
Variable overhead3 hours per unit @ $2.01 per hour
Actual Costs
Total variable cost, $18,100
Total fixed cost, $8,100
Calculate the amount of the total factory overhead cost variance?
a. $3,187 favorable
b. $3,187 unfavorable
c. $1,819 unfavorable
d. $4,555 favorable
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