Solved

The Standard Fixed Factory Overhead Rate Is Based on 100 $950,000 Actual: Factory overhead 900,000 Standard: 100,000 hours at $9.00\begin{array}{ll}\$ 950,000 & \text { Actual: Factory overhead } \\900,000 & \text { Standard: } 100,000 \text { hours at } \$ 9.00\end{array}

Question 22

Multiple Choice

The standard fixed factory overhead rate is based on 100% capacity of 120,000 machine hours for Thompson Inc. The standard costs and the actual costs of factory overhead for the production of 25,000 units during March were as follows: $950,000 Actual: Factory overhead 900,000 Standard: 100,000 hours at $9.00\begin{array}{ll}\$ 950,000 & \text { Actual: Factory overhead } \\900,000 & \text { Standard: } 100,000 \text { hours at } \$ 9.00\end{array}
If there was a $60,000 unfavorable volume variance for March, what is the standard fixed factory overhead cost rate?


A) $3.00
B) $2.50
C) $6.67
D) $0.60

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q18: The following data relate to direct

Q19: Benjamin Corporation began its operations on September

Q23: In preparing flexible budgets, the first step

Q23: If the expected sales volume for the

Q24: Standard Corporation uses a standard cost

Q26: The following data relate to direct

Q127: The cash budget summarizes future plans for

Q130: An unfavorable volume variance may be due

Q146: The difference between the standard cost of

Q167: It would be most appropriate to develop