The standard costs and actual costs for factory overhead for the manufacture of...

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Accounting

The standard costs and actual costs for factory overhead for the manufacture of 2,700 units of actual production are as follows:
Standard Costs
Fixed overhead (based on 10,000 hours)
Variable overhead
3 hours per unit at $0.70 per hour
3 hours per unit at $2.09 per hour
Actual Costs
Total variable cost, $18,100
Total fixed cost, $8,200
The total factory overhead cost variance is
a. $1,171 unfavorable
b. $2,501 favorable
c. $2,501 unfavorable
d. $3,831 favorable
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