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The following information was taken from the annual manufacturing overhead cost budget of Waterway Industries. Variable manufacturing overhead costs $52800 Fixed manufacturing overhead costs $26400

The following information was taken from the annual manufacturing overhead cost budget of Waterway Industries.

Variable manufacturing overhead costs $52800
Fixed manufacturing overhead costs $26400
Normal production level in labor hours 22000
Normal production level in units 5500
Standard labor hours per unit 4

During the year, 5325 units were produced, 17240 hours were worked, and the actual manufacturing overhead was $78600. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours. Waterway's volume overhead variance is

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