In October, Niole Company reports $20,700$ actual direct labor hours, and it incurs $$171,200$ of manufacturing overhead costs. Standard hours allowed for the work done is $21,400$ hours. The predetermined overhead rate is $$8\mathrm{.}25$ per direct labor hour. In addition, the flexible manufacturing overhead budget shows that budgeted costs are $$6\mathrm{.}25$ variable per direct labor hour and $$50,000$ fixed.

Compute the overhead volume variance. Normal capacity was $25,000$ direct labor hours.

Overhead Volume Variance $