Question

The standard costs and actual costs for factory overhead for the manufacture of 2,800 units of...

The standard costs and actual costs for factory overhead for the manufacture of 2,800 units of actual production are as follows:

Standard Costs
Fixed overhead (based on 10,000 hours) 3 hours per unit at $0.71 per hour
Variable overhead 3 hours per unit at $2.06 per hour
Actual Costs
Total variable cost, $18,000
Total fixed cost, $8,000

The fixed factory overhead volume variance is

a.$0

b.$909 unfavorable

c.$1,136 unfavorable

d.$909 favorable

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