Answered step by step
Verified Expert Solution
Question
1 Approved Answer
During November, Gliem company allocated overhead to products at the rate of 26 dollars per direct labor hour. The figure was based on 80 percent
During November, Gliem company allocated overhead to products at the rate of 26 dollars per direct labor hour. The figure was based on 80 percent of capacity or 1600 direct labor hours. However, Gliem company operated at only 70 percent of capacity, or 14,000 direct labor hours. Budgeted overhead at 70 percent of capacity is 38,900 dollars and overhead actually incurred was 3800 dollars. What is the company's volume variance for November? Indicate whether the variance is favorable or unfavorable?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started