Kale Corporation's budgeted fixed factory overhead costs are $25,00 . per month plus a variable factory overhead rate of $8.00 per direct labor hour. The standard direct labor hours allowed for November production were 10,000 . An analysis of the factory overhead indicates that in November Kale had a favorable flexible-budget variance of $1,500 and an unfavorable production-volume variance of
$500 . Kale uses a two-variance analysis of overhead variances. The actual factory overhead incurred in October is:
a. $105,500.
b. $104,500.
c. $106,500.
d. $103,500.
d
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