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Test File
By: Elsie

The standard factory overhead rate is $7.50 per machine

The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhead and $1.30 for fixed factory overhead) based on 100% of normal capacity of 80,000 machine hours. The standard cost and the actual cost of factory overhead for the production of 15,000 units during August were as follows:Actual:Variable factory overhead$360,000Fixed factory overhead104,000Standard hours allowed for units produced:60,000 hoursWhat is the amount of the variable factory overhead controllable variance?a.$12,000 unfavorableb.$26,000 unfavorablec.$14,000 unfavorabled.$12,000 favorable

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