Case 23.7

Daub, Inc. gathered the following information for the month ended March 31, 2009:

The static budget volume is 4,500 units:

Overhead flexible budget:

Number of units 4,000 4,500 5,000

Standard machine hours 12,000 13,500 15,000

Budgeted overhead costs:

Variable $24,000 $27,000 $30,000

Fixed $33,750 $33,750 $33,750

Actual production was 5,000 units. Actual overhead costs were $26,000 for variable costs and $35,000 for fixed costs. Actual machine hours worked were 14,100 hours.

Refer to Case 23.7. What is the overhead production volume variance?

Refer to Case 23.7. What is the standard rate of variable overhead per machine hour?