Compute the total factory overhead cost variance

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Question - Frogue Corporation uses a standard cost system. The following information was provided for the period that just ended:

Actual price per kilogram $2.50

Actual kilograms of material used 31,000

Actual hourly labor rate $18.10

Actual hours of production 4,900 labor hrs.

Standard price per kilogram $2.80

Standard kilograms per completed unit 6 kilograms

Standard hourly labor rate $18.00

Standard time per completed unit 1 hr

Actual total factory overhead $34,900

Actual fixed factory overhead $18,000

Standard fixed factory overhead rate $1.20 per labor hour

Standard variable factory overhead rate $3.80 per labor hour

Maximum plant capacity 15,000 hours

Units completed during the period 5,000

Required - Compute the total factory overhead cost variance?

a. $3,900 favorable.

b. $10,400 favorable.

c. $10,400 unfavorable.

d. $9,900 unfavorable.

Reference no: EM132762057

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