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Mercuri Company has gathered the following information: Variable manufacturing overhead costs $12,780 Fixed manufacturing overhead costs $9,810 Normal production level in labour hours 9,000 Standard

Mercuri Company has gathered the following information:

Variable manufacturing overhead costs
$12,780
Fixed manufacturing overhead costs
$9,810
Normal production level in labour hours
9,000
Standard labour hours
9,500

During the year, 3,040 units were produced, 10,900 hours were worked, and the actual manufacturing overhead was $20,800. Actual fixed overhead totalled $9,850. Mercuri applies overhead based on direct labour hours.

Calculate the variable overhead price variance.

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