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Cooper Corporation produces decorator wall coverings. Budgeted production is 240,000 square feet per month, and the standard direct labor requirement to make this amount
Cooper Corporation produces decorator wall coverings. Budgeted production is 240,000 square feet per month, and the standard direct labor requirement to make this amount is 6,000 hours. All overhead is allocated based on direct labor hours. The following information is available: Budgeted Actual Amounts Results Production in units 240,000 300,000 Total labor hours 6,000 7,500 Total variable overhead $ 9,000 $ 11,200 Total fixed overhead. $ 4,500 $ 4,800 Total overhead $ 13,500 $ 16,000 The overhead volume variance for the month in question was: Multiple Choice $1,125 unfavorable. $1,125 favorable.
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