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Question - The standard costs and actual costs for factory overhead for the manufacture of 3,000 units of actual production are as follows:
Standard Costs
Fixed overhead (based on 10,000 hours) 3 hours per unit at $0.70 per hour
Variable overhead 3 hours per unit at $2.06 per hour
Actual Costs
Total variable cost, $17,900
Total fixed cost, $8,000
Compute the fixed factory overhead volume variance?
a. $560 favorable
b. $700 unfavorable
c. $560 unfavorable
d. $0
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