In October, Pine Company reports 22,000 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 $9.25 per direct labor hour. In addition, the flexible manufacturing overhead budget shows that budgeted costs are $7.65 variable per direct labor hour and $51,500 fixed. Compute the overhead volume variance. Normal capacity was 25,000 direct labor hours.

Overhead Volume Variance

$Type your answer here

Choose your answer here FavorableNeither favorable nor unfavorableUnfavorable