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In October, Cullumber Company reports 19,800 actual direct labor hours, and it incurs $198,900 of manufacturing overhead costs. Standard hours allowed for the work done
In October, Cullumber Company reports 19,800 actual direct labor hours, and it incurs $198,900 of manufacturing overhead costs. Standard hours allowed for the work done is 22,100 hours. The predetermined overhead rate is $9.10 per direct labor hour. In addition, the flexible manufacturing overhead budget shows that budgeted costs are $7.07 variable per direct labor hour and $50,750 fixed. Compute the overhead volume variance. Normal capacity was 25,000 direct labor hours. Overhead Volume Variance $
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