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In October, Pine Company reports 20,100 actual direct labor hours, and it incurs $107,500 of manufacturing overhead costs. Standard hours allowed for the work done
In October, Pine Company reports 20,100 actual direct labor hours, and it incurs $107,500 of manufacturing overhead costs. Standard hours allowed for the work done is 21,500 hours. The predetermined overhead rate is $5.15 per direct labor hour. In addition, the flexible manufacturing overhead budget shows that budgeted costs are $3.08 variable per direct labor hour and $51,750 fixed. Compute the overhead volume variance. Normal capacity was 25,000 direct labor hours.
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