Multiple Choice
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: 
-The following data are given for Bahia Company: 
Overhead is applied on standard labor hours.The fixed factory overhead volume variance is
A) $65 unfavorable
B) $65favorable
C) $540 unfavorable
D) $540 favorable
Correct Answer:
Verified
Correct Answer:
Verified
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