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the actual and standard factory overhead costs for producing a specified quantity of 666011

The actual and standard factory overhead costs for producing a specified quantity of product are as follows:

Actual: Variable factory overhead

$72,500

 

Fixed factory overhead

40,000

$112,500

Standard: 19,000 hours at $6

 

 

($4 variable and $2 fixed)

 

114,000

If 1,000 hours were unused, the fixed factory overhead volume variance would be:

A. $1,500 favorable.

B. $2,000 unfavorable.

C. $4,000 unfavorable.

D. $6,000 unfavorable.

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