Calculate the variable overhead price variance

Vaughn Company has gathered the following information: Variable manufacturing overhead costs Fixed manufacturing overhead costs Normal production level in labour hours Standard labour hours $12,780 $9,810 9,000 9,500 During the year, 3,040 units were produced, 10,900 hours were worked, and the actual manufacturing overhead was $20,800. Actual fixed overhead totalled $9,850. Vaughn applies overhead based on direct labour hours.