Pharoah

In October, Pharoah Company reports 20,800 actual direct labor hours, and it incurs $190,400 of manufacturing overhead costs. Standard hours allowed for the work done is 23,800 hours. The predetermined overhead rate is $8.25 per direct labor hour. In addition, the flexible manufacturing overhead budget shows that budgeted costs are $6.19 variable per direct labor hour and $51,500 fixed. Compute the overhead volume variance. Normal capacity was 25,000 direct labor hours