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Question - The standard factory overhead rate is $10 per direct labor hour ($7 for variable factory overhead and $3 for fixed factory overhead) based on 100% 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:
Standard
25,000 hours at $10
$250,000
Actual:
Variable Factory Overhead
$202,500
Fixed factory overhead
60,000
Required - What is the amount of the factory overhead volume variance?
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